India’s dependence on crude oil imports is on track to set a record high in the fiscal year ending March 31, 2025, as Indian fuel demand continues to grow while domestic crude production remains flat.
India imported 88.2% of the crude it consumed in the April 2024-February 2025 period, according to oil ministry data reported by The Indian Express.
The import dependence has increased from 87.7% in the same period of the 2023/2024 fiscal year, the data showed.
The Indian import dependence in the full 2023/2024 fiscal year averaged 87.8%. As import and demand trends have shown in recent months, the 2024/2025 fiscal year will see an even higher – an all-time high – reliance on crude oil imports.
India last year surpassed China as the world’s largest oil demand driver, amid growing demand for fuel transportation in India and slowing gasoline and diesel demand in China due to the advance of electric vehicles and LNG-fueled trucks in the world’s top crude oil importer.
In the near term, Indian refiners are on the lookout for funding to build new refineries as they seek to expand their refining capacity to meet growing domestic demand for fuels amid higher-than-average economic growth and rising middle-class numbers.
India, however, remains vulnerable to oil price shocks as its need for imported crude continues to grow.
That’s why the country, which is the world’s third-biggest crude importer after China and the U.S., has turned to cheap Russian oil unwanted and sanctioned by the West.
