In the fiscal year 2023–24 (FY24), India’s consumption of petroleum products rose by 4.6 percent to 233.3 million metric tons (MMT), while the nation’s domestic output was constant.
In addition to LPG, lubes, bitumen, petcoke, and LDO, the latest report from the oil ministry states that the growth in petroleum production consumption—a measure of oil demand—in FY24 was led by 6.4 percent growth in motor spirit (MS), or petrol, 4.4 percent growth in high speed diesel (HSD), 11.8 percent growth in ATF, and 14.3 percent growth in naptha consumption. 223 MMT of the product were consumed the year before.
India imported the most crude oil of the year, accounting for 87.7% of the nation’s total oil needs, which were supplied by foreign nations.
Due to controlled supplies from the Organization of Petroleum Exporting and its allies (OPEC+) and geopolitical concerns in the Middle East, India’s greater reliance on imports of crude oil presents a difficulty for the nation.
The biggest oil and gas explorer in India, ONGC, wants to progressively increase output by FY25 by reversing years of declining production. To this end, the company is focusing on additional output from its Krishna Godavari (KG) basin. It is anticipated that the KG basin production boost from ONGC will result in an 11% rise in oil output and a 15% increase in gas production.
Regarding the crude trade, India has expanded the range of countries from which it purchases crude oil, having previously purchased from 29 to 37. Prior to 2022, Russia supplied only 0.2 percent of India’s entire crude demand; today, it contributes almost 30 percent of the country’s total petroleum imports.
