Energy · Security of supply

India's Energy Security

India is one of the world's largest oil consumers and imports most of what it uses. Energy security policy tries to keep supply available, prices affordable and the system resilient to shocks. This page sets out the documented facts, objectives and trade-offs.

Crude import dependence88.7% (FY 2025-26 P)

Gas import dependence50.1% (FY 2025-26)

Strategic reserve (Phase I)5.33 MMT

The core facts

Demand growing, supply mostly imported

In FY 2025-26 India imported 245.8 million tonnes of crude oil and produced 28.0 million tonnes at home. PPAC puts crude import dependence at 88.7%, up from 88.3% the year before. For natural gas the figure was 50.1%, and for oil and gas combined 80.7%.

The International Energy Agency's India Oil Market Report (February 2024) projected India as the largest source of global oil demand growth to 2030. It expected demand to rise by about 1.2 million barrels a day to 6.6 mb/d, more than a third of projected global growth. The IEA's Global Energy Review 2026 reported that India's oil demand grew only 0.6% in 2025. It noted a roughly 50% rise in biofuel use in road transport.

Sources: PPAC Snapshot, Aug 2026 · IEA (2024) · IEA (2026)

Hardeep Singh Puri in a red turban and cream waistcoat speaking at a roundtable meeting — Speaking at a roundtable meeting. The event and date are not independently verified.

Dependence at a glance

Import dependence by fuel, FY 2025-26

Import dependence, FY 2025-26

Share of consumption met by imports, PPAC definition

View as table

Item	%
Crude oil	88.7%
Oil and gas combined	80.7%
Natural gas	50.1%

Source: PPAC Snapshot, Aug 2026 (provisional).

245.8MMTCrude oil importsFY 2025-26 · PPAC

US$123.4bnCrude import billFY 2025-26 · PPAC

34.4BCMLNG importsFY 2025-26 · PPAC

US$13.4bnLNG import billFY 2025-26 · PPAC

Buffers

Strategic petroleum reserves

Indian Strategic Petroleum Reserves Ltd (ISPRL) runs underground rock caverns that hold crude oil for emergencies.

Facility	Phase	Capacity	Status
Visakhapatnam, Andhra Pradesh	Phase I	1.33 MMT	Operational
Mangaluru, Karnataka	Phase I	1.50 MMT	Operational
Padur, Karnataka	Phase I	2.50 MMT	Operational
Chandikhol, Odisha	Phase II	4.00 MMT	Approved by Cabinet, 8 July 2021
Padur II, Karnataka	Phase II	2.50 MMT	Approved by Cabinet, 8 July 2021

Phase I (5.33 MMT) is described by the ministry as about 9.5 days of cover. Official statements have put total national cover at about 74 days of net imports once refinery and company stocks are included; that figure is older and may not reflect current stocks. Media reports in 2026 describe further expansion plans, but no official approval for them was found, so they are not listed. Source: MoPNG — ISPRL.

Policy lens

The main levers, examined

Each lever is set out in the same way: what the policy aims to do, how it is carried out, what the data show, what the minister has said, and the documented outcome.

Diversifying supply

Imports

Policy objective

Reduce exposure to any one supplier or shipping route by widening the range of crude, LNG and LPG sources.

Implementation

Long-term contracts signed by public-sector companies. These include a 14-year IOCL–ADNOC LNG agreement for 1.2 MTPA from 2026, announced at India Energy Week 2025 (PIB). Media also reported a first structured US LPG contract, of about 2.2 MTPA for 2026, in November 2025.

Data

PPAC and the ministry do not publish crude imports by country of origin. Third-party tanker-tracking estimates exist but are not official and are not reproduced here.

Public statements

“Global turmoil has never been passed on to the consumer.” — Hardeep Singh Puri, India Energy Week 2026 closing, 30 January 2026 (PIB).

Outcome

Crude import dependence was 88.7% in FY 2025-26, similar to FY 2024-25 (88.3%). Diversification changes where oil comes from, not how much is imported.

Raising domestic exploration

Upstream

Policy objective

Increase domestic oil and gas output through open-acreage licensing and simpler regulation.

Implementation

Under HELP/OALP, 172 blocks covering 3,78,652 sq km have been awarded across nine rounds. About 1 million sq km of earlier offshore “no-go” area was released in 2022. The Oilfields (Regulation and Development) Amendment Act, 2025 introduced a “petroleum lease” (PIB).

Data

Domestic crude and condensate production was 28.0 MMT in FY 2025-26, compared with 28.7 MMT in FY 2024-25. Gross gas production was 34.8 BCM, compared with 36.1 BCM (PPAC).

Public statements

At the OPEC International Seminar in July 2025, the minister spoke of India being “close to discovering a Guyana-scale oilfield in the Andaman Sea” (PIB). That is a statement of expectation, not a confirmed discovery.

Outcome

Exploration takes years to show up in production. The official data do not yet show higher output.

Substituting imported fuel

Biofuels

Policy objective

Replace part of imported petrol with domestically produced ethanol, and part of gas demand with compressed biogas.

Implementation

E20 blending reached in ESY 2025-26. CBG blending obligation rising from 1% (FY 2025-26) to 5% (FY 2028-29) (PIB).

Data

The ministry estimates more than 310 lakh tonnes of crude substituted and more than ₹1.90 lakh crore of foreign exchange saved from ESY 2014-15 to May 2026 (PIB).

Public statements

“India's ethanol journey is unstoppable.” — Hardeep Singh Puri, 8 August 2025 (PIB).

Outcome

The savings are ministry estimates. The method is not published in the release. Trade-offs are discussed on the Biofuels & Ethanol page.

Trade-offs

What energy-security policy has to balance

Cost against resilience. Strategic storage and long-term contracts reduce risk but cost money and can lock in prices.
Consumer prices against company finances. Keeping pump prices stable during price spikes shifts the cost to oil marketing companies or to government revenue. The excise cut of March 2026 is one documented example.
Imports against domestic output. Domestic exploration is slow and geologically uncertain. Imports are quick but expose the economy to external shocks.
Security against emissions. Coal, gas, oil and biofuels differ in cost, security and emissions. See Energy Transition.

Sources

PPAC — Snapshot of India's Oil & Gas Data, August 2026 (PDF) — ppac.gov.in/download.php?file=rep_studies/1789735879_Final__Snapshot_o…
MoPNG — Indian Strategic Petroleum Reserves Ltd — mopng.gov.in/en/international-cooperation/isprl
IEA — India Oil Market Report (Feb 2024), executive summary — iea.org/reports/india-oil-market-report/executive-summary
IEA — Global Energy Review 2026: Oil — iea.org/reports/global-energy-review-2026/oil
PIB — IEW 2025 agreements (13 Feb 2025) — pib.gov.in/PressReleasePage.aspx?PRID=2102887
PIB — IEW 2026 closing (30 Jan 2026) — pib.gov.in/PressReleasePage.aspx?PRID=2220772
PIB — Upstream reforms and Oilfields Amendment Act (11 Dec 2025) — pib.gov.in/PressReleasePage.aspx?PRID=2202520
PIB — OPEC Seminar address (9 Jul 2025) — pib.gov.in/PressReleasePage.aspx?PRID=2143550
PIB — CBG blending obligation (Nov 2023) — pib.gov.in/PressReleasePage.aspx?PRID=1979705
PIB — E20 achievement (5 Jul 2026) — pib.gov.in/PressReleasePage.aspx?PRID=2281287
PIB — Biofuels 360 address (8 Aug 2025) — pib.gov.in/PressReleasePage.aspx?PRID=2154355

Gas

Public Life

Energy

Knowledge

India's Energy Security

Demand growing, supply mostly imported

Import dependence by fuel, FY 2025-26

Strategic petroleum reserves

The main levers, examined

Diversifying supply

Raising domestic exploration

Substituting imported fuel

What energy-security policy has to balance

Sources

Natural Gas & LNG

International Energy

Energy Policy Explained