World’s fastest-growing energy market

India is the 3rd largest energy and oil consumer in the World

India is the 4th largest importer of liquefied natural gas (LNG).

India consumed 40.3 MMT petroleum products and 11.3 BCM natural gas in Apr-May 2024, making a growth of 2.4% and 3.66% respectively, over the Apr-May 2023. 

  • Bharat Petroleum estimates that India's energy demand will double, while natural gas demand is expected to grow five-fold by 2050.
  • As on Apr 2022, estimated reserves of crude oil in India stood at 653.02 Mn tonnes, and natural gas stood at 1149.46 Bn cubic meters.
  • India has set a target to raise the share of natural gas in the energy mix to 15% by 2030 from about 6.7% now.
  • A total of 88% of the nation’s geographical area covering 98% of the population has been authorized for the development of City Gas Distribution network.
  • India increased the ethanol blending in petrol from 1.53% in 2013-14 to 10.17% in 2022 and advanced its target of 20% ethanol blending in petrol from 2030 to 2025-26. Further, Ethanol blending with Petrol was 15.4% during May 2024 and cumulative ethanol blending during Nov-May 2024 was s 12.6%.
  • Target of setting up 12 Commercial Scale 2G Bio-Ethanol Projects with Viability Gap Funding of up to INR 150 Cr per project under the Pradhan Mantri Ji-VAN Yojana.
  • Target of setting up 5000 Compressed Biogas (CBG) units under the Sustainable Alternative Towards Affordable Transportation (SATAT) Scheme. In this regard, as of 01.03.2023, 4215 LOIs have been issued. Under waste-to-energy program, GoI provides financial assistance to bio-gas plants.

For further details, please refer FDI Policy

  • %

    Decreasing Kerosene consumption CAGR (2013-14 to 2022-23)

  • %

    Electricity Consumption Growth (Apr-Feb 2023)

  • %

    Availability of Petroleum products CAGR (2013-14 to 2022-23)

Largest exporter of petroleum products in Asia since 2009 (FY 2020-21)

Fourth largest global refiner

Third largest energy consumer in the world 

Industry Scenario

Exploration & Production:

  • There are 26 sedimentary basins, covering a total area of 3.4 Mn sq. km. The area is spread across the land, shallow water up to 400-meter water depth, and Deepwater further up to Exclusive Economic Zone (EEZ). 
  • Cumulative crude oil production during May 2024 was 23 MMT. Natural Gas production for May 2024 was 3.15 BCM.
  • During 1st Apr-31st Jul 2022,  8 Blocks were carved out under OALP IX
  • It is intended to increase the nation's exploration acreage by 0.5 Mn sq km till 2025 and by 1.0 Mn sq km till 2030. 


  • India‘s refining capacity stands at 256.8 MMTPA as of Apr 2024, comprising 23 refineries. Refinery capacity utilization is about 96% for the year 2021-22. Indian Oil Corporation (IOC) is the largest domestic refiner with a capacity of 70.1 MMTPA.
  • Crude oil processing increased by 1.3% to 23 MMT in May 2024 vis-à-vis corresponding period of last year.
  • Petroleum product production saw an increase of 0.5% in May 2024 vis-à-vis Apr 2023. The production of petroleum products stood at 24 MMT in May 2024.
  • India aims to increase its refining capacity to 450 MMTPA by 2030. 

Natural Gas Infrastructure:

  • A total of 23,391 km of the natural gas pipeline is operational and about 4,125 km of the gas pipeline is under construction as of Dec 2023. 
  • Target to increase the pipeline coverage by ~54% to 34,500 km by 2024-25 and to connect all the states with the trunk natural gas pipeline network by 2027.
  • As on 30.04.2024, 13.06 Mn domestic PNG connections and 6,907 CNG stations have been established.   
  • As per Minimum Work Programme, the authorized CGD entities authorized have to provide 123.3 Mn PNG connections and establish 17,700 CNG stations by 2030.
  • Liquefied Natural Gas (LNG) supply is forging ahead on both coasts with 06 operational LNG terminals. The total capacity of LNG terminals stands at 47.7 MMTPA.

Import & Export:

  • India imported 43.1 MMT of crude oil for $26.1 Bn in Apr-May 2024 as compared to an import of 40.6 MMT for $21.5 Bn in Apr-May 2023. Import dependency in case of crude oil in May 2024 was 88.2% as compared to 88.6% during the corresponding period of last year.
  • Export of petroleum products were $7.5 Bn in the Apr-May 2024. 

Petroleum Products Consumption:

  • The Overall consumption of Petroleum products in the nation saw an increment of 4.6% to reach 233.3 MMT in Apr-Mar 2024 from 223 MMT during the same period of the previous year.  The major product-wise breakdown of the same are as follows:
    • The LPG consumption increased by 4% from 28 MMT during Apr-Mar 2023 to 29 MMT during Apr-Mar 2024. As on 01.06.2024, there are 326 Mn active LPG domestic connections by PSUs.
    • The Motor Spirit consumption increased from 6.2 MMT in Apr-May 2023 to reach to 6.7 MMT in Apr-May 2024. 
    • The HSD consumption increased from 16.3 MMT in Apr-May 2023 to 16 MMT in Apr-May 2024.

Union Budget 2023 Highlights

  • INR 35,000 Cr for priority capital investments towards energy transition and net zero objectives, and energy security
  • INR 10,000 Cr for compressed bio-gas plants and 300 community and cluster-based biogas plants. 


  • India's energy demand

    Expected to grow at about 3% per annum by 2040, compared to the global rate of 1%. Further, 25% of the global energy growth between 2020 and 2040 is envisaged to come from India due to the fast-growing economy and demographic dividend

  • Unified tariff for natural gas pipelines and review of domestic gas pricing

    Unified tariff aims to benefit the consumers located in the areas where currently the additive tariff is applicable, facilitating the development of gas markets. Domestic Natural Gas Price shall be 10% of the Indian Crude Basket Price. Further, for the gas produced from nomination fields, the price shall be subject to a floor ($4/MMBTU) and a ceiling ($6.5/MMBTU)

  • Reduction in the ‘No Go'

    Area by 99%, thereby making available an additional approx. 1 Mn of India's EEZ for exploration

  • Favorable policies

    National Data Repository (NDR), Discovered Small Field Policy (DSF), Marketing and Pricing freedom for natural gas, National Seismic Programme (NSP) of unappraised areas Planned 2D Seismic Survey for 48K LKM

  • Government incentives

    Early production royalty concession of 10%, 20% and 30% for Category I, II and III basins respectively

  • Setting up LNG stations

    Any entity can set up LNG stations in any Geographical Area in India even if they do not have a City Gas Distribution license

  • MoEFCC's gazette notification dated 16.01.2020

    Stipulates that seismic survey do not require prior Environmental clearance, provided the concession areas has got previous clearance for physical survey. Further, all project in respect of offshore and onshore oil and gas exploration are categorized as ‘B2’ projects” i.e., will not require an Environment Impact Assessment report


Industrial Land Bank Portal

GIS - based map displaying available infrastructure for setting up business operations in the state.

Investible Projects

Investment Opportunities in Oil & Gas

    Major Investors

    Data on Map

    Latest In Oil & Gas

    Jul 12, 2024

    Exploration and Production (E&P) sector offers investment opportunities worth $100 Bn by 2030

    Read Now

    Exploration and Production (E&P) sector…

    Press Release

    Cabinet approves signing of Memorandum of…

    Memorandum of Understanding

    CSIR-Indian Institute of Petroleum signs MoU…

    Press Release

    Historic Milestone in Jharkhand: Foundation…


    Oil and Gas Sector


    Asked Questions

    What is EPP or Export Parity Price?

    Export Parity Price is the price which oil companies would realize on export of petroleum products. This includes Freight on Board (FOB) Price and advance license benefit (for duty free import of crude oil pursuant to export of refined products.

    For more information, click here.

    Was it helpful?

    What do you mean by import parity price?

    Import Parity Price (IPP) is the price that importers would pay in case of actual import of product at the respective Indian ports. This includes FOB price, Ocean freight, Customs duty, Port dues etc.

    For more information, click here

    Was it helpful?

    What are biofuels?

    The National Policy on Biofuels categorises Biofuels as:

    “Basic Biofuels” viz. First Generation (1G) bioethanol & biodiesel and “Advanced Biofuels” – Second Generation (2G) ethanol, Municipal Solid Waste (MSW) to drop-in fuels, Third Generation (3G) biofuels, bio CNG etc.

    For more information, click here.


    Was it helpful?

    What are various types of petrol/ diesel available in India?

    Various petrol types are as follows: MS 93/95, Bharat Stage (BS) IV, Bharat Stage (BS) VI, branded petrol (with additives) etc.

    Various types of diesels are as follows: Light Diesel Oil (LDO), BS IV, BS VI, Bio Diesel, Branded Diesel (with additives) etc.

    To know more about the Oil & Gas sector opportunity in India, please visit the Oil & Gas page at Invest India website.

    For further details on Indian Petroleum and Natural Gas Statistics, please refer this link:

    For more information, click here.

    Was it helpful?

    Under what situations IGST is applicable?

    As per the GST law, if the location of the supplier and place of supply is in different states then IGST would be applicable.

    For more information, click here


    Was it helpful?