INDIAN OIL INDUSTRY AT A GLANCE IN 2022 - 2023
The oil and gas sector is one of the eight core industries in India and plays a major role in the economy. India’s economic growth is closely related to its energy demand, therefore, the need for oil and gas is projected to increase. India retained its spot as the third-largest consumer of oil in the world as of 2022. India is a refining hub with 23 refineries to boast about. India is planning to double its oil refining capacity to 450-500 million tonnes by 2030.
India is expected to be one of the largest contributors to non-OECD petroleum consumption growth globally. India’s share in global primary energy consumption is projected to increase to two-fold by 2035.
Demand for Oil In IndiaThe country's oil demand is expected to increase by 40% to 6.7 9(million barrels) mb/day by 2030 and further to 8.3 mb/day in 2050.
Diesel demand in India is expected to double to 163 MT by 2029-30, with diesel and gasoline covering 58% of India’s oil demand by 2045.
Consumption of natural gas in India is expected to grow by 25 billion cubic metres (BCM), registering an average annual growth of 9% until 2024.
Market sizeIndia’s crude oil production in FY23 stood at 29.2 MMT.
As of April 2022, India’s oil refining capacity stood at 251.2 MMTPA, making it the second-largest refiner in Asia.
India’s consumption of petrol products stood at 222.3 MMT in FY23.
High-Speed Diesel was the most consumed oil product in India and accounted for 38.6% of petroleum product consumption in FY23.
India’s consumption of petroleum products stood at almost 4.44 million barrels per day (BPD) in FY23, up from 4.05 million BPD in FY22.
India’s LNG import stood at 20.1 million metric tonnes (MMT) in FY23.
Industry DevelopmentsFDI inflows in India’s petroleum and natural gas sector stood at US$ 8.08 billion between April 2000-December 2022.
The total number of OMC retail outlets increased to 86,925, as of May 1, 2023, from 59,595 in FY17.
Exports of petroleum products from India reached 61 MMT in FY23.
The value of exports of crude oil and petroleum products stood at US$ 44.41 billion. In FY22, crude oil imports stood at 4.24 MBPD, which was worth US$ 120.4 billion.
Future ScopeCrude oil consumption is expected to grow at a CAGR of 5.14% to 500 million tonnes by FY40 from 202.7 million tonnes in FY22. In terms of barrels, India’s oil consumption is forecast to rise from 4.05 MBPD in FY22 to 7.2 MBPD in 2030 and 9.2 MBPD in 2050.
Diesel demand in India is expected to double to 163 MT by 2029-30, with diesel and petrol covering 58% of India’s oil demand by 2045.
Natural Gas consumption is forecast to increase at a CAGR of 12.2% to 550 MCMPD by 2030 from 174 MCMPD in 2021.
