Rude Shock Over Crude Oil

With US sanctions placed on Russian crude, India's oil import bill is set for a hike

- By PRASHANT VASISHT

INDIA IS THE THIRD LARGEST consumer of crude oil after the United States and China. India's crude oil consumption has increased from 183.9 million metric tonne (MMT) in FY15 to 265.7 MMT in FY25, growing at a CAGR of 3.7 percent, while the domestic production of crude oil has declined from 37.5 MMT to 28.7 MMT during the same period. Currently, only 12 percent of the country's need is met domestically, while 89 percent is met through imports, entailing a huge import bill. The demand for crude oil is expected to increase by 2 to 3 percent in FY26 and will continue to increase over the next several years. However, the growth in domestic crude oil production is expected to be limited, hence the high dependence on imports.