India's petroleum imports grew by 7.7% during April-October FY 2024-25, driven by increased demand for liquefied petroleum gas (LPG), petcoke, and lubricants, according to data from the Petroleum Planning and Analysis Cell (PPAC). However, October 2024 recorded a slight 2.2% dip in imports compared to the same month last year.
Crude oil imports rose by 3.5% in the first seven months of FY 2024-25 and by 4.2% in October 2024 year-on-year. The net import bill for October 2024 stood at $10.6 billion, down from $11.8 billion in October 2023, thanks to reduced global crude prices, which averaged $75.66 per barrel in October 2024 compared to $91.05 a year earlier.
Domestic Crude Production and Refinery Output
Domestic crude oil production continued to face challenges, declining by 4.9% year-on-year in October 2024 to 2.4 million metric tons (MMT). Oil India Limited (OIL) contributed 0.3 MMT, ONGC produced 1.6 MMT, and private operators added 0.5 MMT.
In contrast, Indian refineries processed 21.3 MMT of crude in October 2024, a 3.6% increase from the previous year. Public Sector Units handled 14.1 MMT, while private refiners processed 7.2 MMT. Cumulative crude processing during April-October FY 2024-25 rose by 2%.
Petroleum Production and Consumption
Petroleum product output in October 2024 climbed 5.2% year-on-year to 23 MMT, led by diesel, which accounted for 41% of production. Motor spirit (16.8%), aviation turbine fuel (6.6%), and LPG (4.5%) were other key contributors. For April-October FY 2024-25, petroleum production grew by 2.8%.
Consumption of petroleum products also rose, reaching 137.6 MMT for April-October FY 2024-25, a 3% year-on-year increase. October 2024 alone saw a 2.9% rise in consumption to 20 MMT, driven by higher demand for motor spirit (7.4%), LPG (6.6%), and aviation turbine fuel (10.2%).
LNG Imports and Natural Gas Trends
LNG imports surged by 10.5% in October 2024 to 2,932 MMSCM and grew by 22.2% cumulatively for April-October FY 2024-25. Natural gas consumption increased by 4.2% year-on-year in October 2024 to 6,005 MMSCM, with cumulative consumption for April-October FY 2024-25 rising by 11.2%.
Meanwhile, gross natural gas production fell by 1.6% in October 2024 to 3,111 MMSCM. Cumulative production for the fiscal year showed marginal growth of 1.1%, totaling 21,271 MMSCM.
India’s energy landscape reflects a complex interplay of rising demand, global price fluctuations, and domestic production challenges, underscoring the importance of a balanced import strategy.
