Key facts
- India imports 90% of its crude oil demand.
- Overall primary energy import dependence has decreased to 42% in FY25.
- India's current strategic oil reserves cover only eight days of demand.
- ONGC is building a new 13 million barrel oil storage site in Mangaluru.
India's reliance on imported crude oil remains critically high at 90% of its demand, despite a modest overall decrease in primary energy import dependence, according to a joint report by the Confederation of Indian Industry (CII) and EY. The report indicates that overall primary energy import dependence has fallen from 47% in fiscal year 2017 to approximately 42% in fiscal year 2025.
As the world's third-largest crude oil importer, India faces rising dependence due to increasing demand and declining domestic production. Geopolitical tensions in the Middle East and disruptions at the Strait of Hormuz have prompted Indian refiners to seek alternative supplies and the government to bolster strategic reserves. The Oil and Natural Gas Corporation (ONGC) is constructing a new storage facility in Mangaluru capable of holding 13 million barrels of oil.
Record crude oil imports from Russia have partially offset supply disruptions, but India's limited current reserve capacity, sufficient for only eight days of national demand, highlights the vulnerability to supply shocks. Consequently, Indian state-run refiners are actively increasing purchases from West African sources as Middle Eastern supplies become less certain.