Lok Sabha Question No. 2379 (UNSTARRED), answered on 2023-08-03
Subject: Dependence on Import of Crude Oil
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Ashok Mahadeorao Nete

## Dependence on Import of Crude Oil

## 2379. SHRI ASHOK MAHADEORAO NETE:

## पेोिलयम और ाक ृ ितक गैस मंी

## Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

(a)  whether  the  dependence  on  import  of  crude  oil  is  likely  to  increase  further  to  meet  the consumption of petroleum products and the requirement of oil refineries in the country in the ensuing years;

(b) if so, the percentage to which this dependence is likely to be increased in the ensuing years; and

(c)  the  percentage  by  which  the  dependence  is  likely  to  increase  vis-a-vis  the  existing percentage thereof?

## ANSWER

## पेोिलयम और ाक ृ ितक गैस मंालय म राय मंी ( ी रामेर तेली ) MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS

## (SHRI RAMESWAR TELI)

(a) to (c): To meet the consumption of petroleum products and the requirement of oil refineries in  the  country,  domestic  Oil  and  Gas  companies  import  crude  oil.  During  the  FY  2022-23, country's Oil & Oil equivalent Gas import dependency is 78.6% (provisional) which is expected to increase to above 80% by 2027-28. This estimate is based on various assessments/assumptions  of  growth  in  consumption  and  domestic  production.  The  present refining capacity of Indian refineries is 253.9 Million Metric Tons Per Annum, (MMTPA). As per  the  Centre  for  High  Technology  (CHT),  a  technical  wing  of  Ministry  of  Petroleum  and Natural  Gas,  the  refining  capacity  of  Indian  refineries  is  projected  to  increase  by  about  56 MMTPA by the year 2028.

Government has adopted a five-pronged strategy comprising increasing domestic production of oil and gas, promoting energy efficiency and conservation measures, giving thrust on demand substitution,  promoting  biofuels  and  other  alternate fuels/  renewables,  EV  charging  facilities and refinery process improvements for reducing the county's oil dependence on imported crude oil.

Various steps have been taken by the Government to increase the production of domestic crude oil and bring down imports. These inter-alia include Discovered Small Field Policy, Reforms in Hydrocarbon  Exploration  and  Licensing  Policy  for  enhancing  domestic  exploration  and production of Oil & Gas 2019, Natural Gas Marketing Reforms 2020, Policy to promote and incentivize enhanced recovery methods for Oil and Gas, Redevelopment of existing matured fields  and  development  of  new/marginal  fields,  Revival  of  Sick  Wells,  improving  recovery factors  through  the  implementation  of  Improved  Oil  Recovery  (IOR)  and  Enhanced  Oil

Recovery (EOR) techniques, etc. Government has also provided functional freedom to national Oil  Companies  and  promoted  wider  private  sector  participation  by  streamlining  approval processes through electronic single window mechanism.

In  addition,  Government  launched  National  Biofuel  Policy,  2018,  to  boost  availability  of biofuels  in  country  and  use  of  alternative  clean  fuels  like  ethanol,  bio-diesel  and  bio-CNG through  schemes  for  Ethanol  Blending,  Bio-diesel  blending  and  Sustainable  Alternative Towards Affordable Transportation. Ethanol blending in Petrol during the Ethanol Supply Year (ESY) 2021-22 (December 2021-November 2022) is estimated to have had impact of over Rs. 22,600 Crore on the import bill of crude oil and petroleum products. The National Policy on Biofuels - 2018 as amended targets 20% blending of ethanol in petrol by ESY 2025-26. Public Sector  OMCs  have  already  achieved  over  10%  ethanol  blending  in  petrol  during  Ethanol Supply  Year  (ESY)  2021-22.  Sale  of  E-20  (20%  ethanol  blended  petrol)  fuel  has  also  been launched in February, 2023.

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