India's Energy Demand & Crude Oil Imports: Trends and Key Players


The story of India's crude oil industry dates back to 1889, when the first oil reserve was discovered in Digboi, Assam. Today, with over 594.49 million metric tons of crude oil reserves, India is a significant player in the global energy market. However, with a population exceeding 1.4 billion and experiencing rapid economic growth, India imports around 82% of its crude oil to meet domestic demand. As the third-largest oil consumer in the world, this heavy reliance on imports makes India particularly vulnerable to global market fluctuations.

In this blog, we’ll explore India's growing energy needs, recent trends in crude oil consumption, and key insights into India’s crude oil import data, including top importers, HS codes, and more.

The Rise of Crude Oil Consumption in India

India's economic growth has fueled a surge in energy demand, making crude oil a critical component of the country’s energy mix. However, seasonal patterns and climatic factors have led to fluctuations in oil consumption. According to the India Meteorological Department, August saw a decline in oil consumption by 300 kb/d (thousand barrels per day) compared to the previous month, primarily due to above-average monsoon rains.

Gasoline consumption—a key indicator of industrial activity—fell short of projections by 70 kb/d, showing a negative growth year-over-year. Despite these fluctuations, the International Energy Agency (IEA) projects that India will continue to see a significant increase in oil consumption, with an expected rise of 200 kb/d in 2024 and 230 kb/d in 2025.

Key Metrics: India's Oil Consumption and Import Data

India's overall consumption of crude oil and petroleum products rose by 4.6% to 233.3 million metric tons (MMT) in the fiscal year 2023-2024 (FY24). Meanwhile, domestic crude oil production remained relatively stable, increasing slightly by 0.6% to 29.4 MMT.

As per India crude oil import data, India imported 232.5 MMT of crude oil in FY24, nearly matching the 232.7 MMT imported in FY23. Despite similar import volumes, the import bill decreased by 16% to $132.4 billion, down from $157.5 billion in FY23, primarily due to favorable foreign exchange rates. The country's reliance on imported crude oil also increased to 87.7% in FY24.

Leading Crude Oil Importers in India

Crude oil import in India means that it is heavily influenced by the activities of its major importers. As of 2024, India ranks as the third-largest crude oil importer after the United States and China. Key players in the Indian market include:

  1. Reliance Industries Limited (RIL) - The world's largest integrated refinery.
  2. Indian Oil Corporation Limited (IOCL) - A government-owned entity providing a wide range of refined products.
  3. Bharat Petroleum Corporation Limited (BPCL) - A significant producer and distributor of petroleum products.
  4. Hindustan Petroleum Corporation Limited (HPCL) - Owner of major refineries across India.
  5. Oil and Natural Gas Corporation (ONGC) - A leading producer and explorer of crude oil and natural gas.

Global Perspective: Top Crude Oil Importing Countries

India's energy needs position it among the top oil importers globally. Here’s how India compares with other major oil-importing nations:

  1. China
  2. Europe
  3. United States
  4. Other Asia Pacific
  5. India
China remains the world's largest importer, followed by Europe. However, India is projected to surpass the United States and become the second-largest crude oil importer by the end of 2024.

Key Sources of India's Crude Oil Imports

India's top suppliers of crude oil include Iraq, Saudi Arabia, and Russia. In December, Iraq emerged as the leading supplier, contributing $2.42 billion in sales to India.

  1. Iraq
  2. Saudi Arabia
  3. Russia
  4. United Arab Emirates
  5. United States

India’s Path Forward: Reducing Reliance on Crude Oil Imports

With strong economic growth and a rapidly expanding population, India’s energy demand is expected to keep rising. While crude oil will continue to play a crucial role in India's energy mix, there is a growing emphasis on diversifying energy sources. The country is investing in renewable energy projects, boosting domestic oil production, and exploring strategic reserves to reduce its vulnerability to global oil price fluctuations. Also, get Bangladesh import data

Final Thoughts

India's dependence on imported crude oil is a double-edged sword—it drives economic growth but also makes the nation susceptible to geopolitical tensions and price volatility. By investing in alternative energy sources and enhancing domestic production, India can gradually reduce its reliance on imports while meeting its energy needs.

What do you think—how can India further mitigate its dependence on imported crude oil? If you have questions about crude oil import data of India or need more detailed insights, feel free to reach out to our experts at Seair Exim Solutions for comprehensive trade data and analysis. For a free sample data report or live demo, contact us today!

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