Lok Sabha Question No. 3303 (UNSTARRED), answered on 2025-03-20
Subject: Dependence on Global Market Crude Oil for Domestic Use
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Aditya Yadav

## LOK SABHA UNSTARRED QUESTION NO. 3303 TO BE ANSWERED ON 20 th  MARCH, 2025

## Dependence on Global Market Crude Oil for Domestic Use

3303. Shri Aditya Yadav:

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũी

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

- (a)  whether  the  Government  has  taken  cognizance  of  the  fact  that  the  country  is  the  world's third-biggest oil importer and consumer and is dependent for crude oil from various sources in the global market to meet its domestic demand; and
- (b)    if  so,  the  details  thereof  along  with  the  steps  proposed  to  be  taken  by  the  Government keeping in mind that the country's demand for petroleum products is likely to increase in the coming years?

## ANSWER

## पेᮝोिलयम और ᮧाकृ ितक गैस मंᮢालय मᱶ रा᭔यमंᮢी ( ᮰ी सुरेश गोपी )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI SURESH GOPI)

- (a) and  (b):  India  is  the  third  largest  oil  importer  in  the  world.  Energy  consumption  in  the country has been increasing continuously due to sustained economic growth over the last few years.

Government is taking various steps to provide for the country's  energy security, through, inter alia, increasing domestic production of oil and gas, diversifying import sources to new countries and regions; and diversifying energy sources beyond traditional hydrocarbons' to emerging fuels like  Ethanol,  Compressed  Biogas,  Hydrogen  etc  through  schemes  such  as  Ethanol  Blending Program (EBP), Sustainable Alternative Towards Affordable Transportation (SATAT) etc.

To ensure security of crude supplies and to mitigate the risk of dependence on crude oil from single region, Indian Oil Public Sector Undertakings (PSUs) have diversified their crude basket and  are  procuring  crude  from  countries  located  at  various  geographical  locations  viz.  Middle East, Africa, North America, South America etc.

Further,  the  Government  has  adopted  a  multi-pronged  strategy  to  reduce  the  dependency  on crude oil while securing the crude oil supplies for refineries, which include following:-

- i. Increasing  domestic  production  of  oil  and  natural  gas  through  various  policies initiatives, etc. to reduce import dependency.
- ii. Promoting  usage  of  natural gas as fuel/feedstock across  the  country  towards increasing  the  share  of  natural  gas  in  economy  and  moving  towards  gas-based economy to reduce dependence on crude oil.
- iii. Promotion of renewable and alternate fuels like ethanol, second generation ethanol, compressed biogas, biodiesel,Green Hydrogen and EVs, to reduce import of crude oil while also drive clean energy adoption.
- iv. Diversification  of  crude  oil  supplies  beyond  Middle  East  and  OPEC  countries  to secure stable supplies to refineries.
- v. Increasing refining capacity
- vi. Enhancing Strategic Petroleum Reserve capacity to mitigate supply risks and cushion against price volatility.
- vii. Refinery process improvements and promotion of energy efficiency and conservation to optimise operations.
- viii. Exploring  investment  opportunities  in  producing/near  producing  overseas  assets  in stable economies.

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