Archive · 14 Dec 2025
India Urged to Diversify Crude Oil Imports
India gets most of its oil from other countries, which can be risky.
A group in the government says India should get oil from more places and have backup plans.
This is because things like wars and problems in other countries can make it hard to get oil.
The group also says India should have more oil stored and better ways to bring oil in.
They also talked about problems like old oil fields and pollution from oil and gas work.
The government should work with other countries to make sure India can get oil more easily.
India imports 89% of its crude oil, making it vulnerable to global disruptions.
Geopolitical risks include conflicts, sanctions, and shipping route disruptions.
The parliamentary committee recommends diversifying crude oil sourcing and bolstering strategic reserves.
Risk management tools like hedging and flexible term contracts are suggested.
Internal challenges include ageing oil fields, project delays, and environmental concerns.
- Who
- Parliamentary committee, Ministry of Petroleum and Natural Gas (MoPNG), state-run oil companies
- What
- Urging India to diversify crude oil imports and strengthen energy security.
- When
- Report tabled in Parliament last week.
- Where
- India, with global geopolitical implications.
- Why
- To mitigate risks from heavy dependence on crude oil imports and geopolitical uncertainties.
- Crude Oil Imports
- India imports 89% of its crude oil requirements.
- Geopolitical Risks
- Vulnerabilities include conflicts, sanctions, and shipping route disruptions.
- Recommended Actions
- Diversify sourcing, bolster reserves, and develop alternative import routes.
- Risk Management
- Institutionalize hedging and flexible term contracts.
- Internal Challenges
- Ageing oil fields, project delays, and environmental concerns.
Sources
Why India's energy transition hinges on LNG, grids and critical minerals
Parliamentary panel calls for diversification of crude sources to cut geopolitical risks
‘India could face risk of crude oil import uncertainty’: Parliamentary panel urges ‘diversify sourcing’
Hydrogen Demand In India Set To Double To 12 Million Tonnes By 2030: Report