Government Initiatives to Cut Reliance on Crude Oil Imports
OIL & GAS

Government Initiatives to Cut Reliance on Crude Oil Imports

The government has implemented several initiatives to reduce reliance on imported crude oil and enhance domestic oil and gas production. These measures include policies such as the Production Sharing Contract (PSC) regime for early monetization of hydrocarbon discoveries (2014), the Discovered Small Field Policy (2015), and the Hydrocarbon Exploration and Licensing Policy (HELP) (2016). Other key initiatives include the extension of PSCs (2016, 2017), the early monetization of Coal Bed Methane (2017), and the establishment of the National Data Repository (2017). Additional efforts include the appraisal of unassessed sedimentary basins under the National Seismic Programme (2017), incentives for enhanced recovery methods (2018), and reforms in natural gas marketing (2020). Moreover, the government has introduced lower royalty rates, relaxed revenue-sharing mechanisms, and released significant offshore areas for exploration.

To address fuel pricing challenges and mitigate the impact of global crude oil price fluctuations, various steps have been taken. The government reduced central excise duties on petrol and diesel in 2021 and 2022, with state governments also adjusting VAT rates. In 2024, Oil Marketing Companies (OMCs) reduced petrol and diesel prices by Rs 2 per litre. Other strategies include diversifying crude imports, enhancing ethanol blending, and rationalizing freight costs to benefit remote consumers. Subsidised LPG cylinders are provided to over 100.33 million PM Ujjwala Yojana beneficiaries, with additional state-level subsidies.

Public Sector Undertakings (PSUs) in the oil and gas sector are actively working toward achieving net-zero emissions. Their strategies include the adoption of cleaner fuels, implementation of Bharat Stage VI norms, biofuel promotion, expansion of gas-based energy, and investments in green hydrogen and EV infrastructure. Ethanol blending has significantly reduced CO2 emissions, and the Pradhan Mantri JI-VAN Yojana is supporting advanced biofuel projects to further enhance sustainability in the energy sector.

News source: PIB

The government has implemented several initiatives to reduce reliance on imported crude oil and enhance domestic oil and gas production. These measures include policies such as the Production Sharing Contract (PSC) regime for early monetization of hydrocarbon discoveries (2014), the Discovered Small Field Policy (2015), and the Hydrocarbon Exploration and Licensing Policy (HELP) (2016). Other key initiatives include the extension of PSCs (2016, 2017), the early monetization of Coal Bed Methane (2017), and the establishment of the National Data Repository (2017). Additional efforts include the appraisal of unassessed sedimentary basins under the National Seismic Programme (2017), incentives for enhanced recovery methods (2018), and reforms in natural gas marketing (2020). Moreover, the government has introduced lower royalty rates, relaxed revenue-sharing mechanisms, and released significant offshore areas for exploration. To address fuel pricing challenges and mitigate the impact of global crude oil price fluctuations, various steps have been taken. The government reduced central excise duties on petrol and diesel in 2021 and 2022, with state governments also adjusting VAT rates. In 2024, Oil Marketing Companies (OMCs) reduced petrol and diesel prices by Rs 2 per litre. Other strategies include diversifying crude imports, enhancing ethanol blending, and rationalizing freight costs to benefit remote consumers. Subsidised LPG cylinders are provided to over 100.33 million PM Ujjwala Yojana beneficiaries, with additional state-level subsidies. Public Sector Undertakings (PSUs) in the oil and gas sector are actively working toward achieving net-zero emissions. Their strategies include the adoption of cleaner fuels, implementation of Bharat Stage VI norms, biofuel promotion, expansion of gas-based energy, and investments in green hydrogen and EV infrastructure. Ethanol blending has significantly reduced CO2 emissions, and the Pradhan Mantri JI-VAN Yojana is supporting advanced biofuel projects to further enhance sustainability in the energy sector. News source: PIB

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