India’s oil and gas industry displayed mixed trends in July 2024, with indigenous crude oil production witnessing a decline, while refinery output surged. According to the Ministry of Coal, domestic crude oil and condensate production dropped by 2.9%, totaling 2.4 million metric tonnes (MMT) during the month. This reduction highlights the ongoing challenges faced by the nation in enhancing crude oil production.
Breakdown of Crude Oil Production in India
| Producer | Production (MMT) |
| Oil India Limited (OIL) | 0.3 |
| Oil and Natural Gas Corp. (ONGC) | 1.6 |
| Production Sharing Contracts (PSC) & Revenue Sharing Contracts (RSC) | 0.5 |
Oil and Natural Gas Corporation (ONGC) accounted for the majority of the production at 1.6 MMT, while Production Sharing Contracts (PSCs) and Revenue Sharing Contracts (RSCs) added 0.5 MMT. Despite these contributions, domestic output struggles to meet demand.
Refinery Output Sees Positive Growth
In contrast to the decline in crude production, total crude oil processed during July 2024 increased by 3.2% year-on-year, reaching 22.6 MMT. The refinery sector saw robust growth across both public and private enterprises:
| Refinery Category | Crude Processed (MMT) |
| Public Sector Units (PSUs) | 15.3 |
| Private Refiners | 7.3 |
Notably, 1.9 MMT of the refined output came from indigenous crude, while the remaining 20.7 MMT was imported, reflecting India’s heavy reliance on crude imports.
Import and Export Dynamics
While crude oil imports dipped slightly by 0.7% in July 2024, the cumulative imports from April to July 2024 recorded a 2.5% increase compared to the same period last year. The financial impact was significant, with the oil and gas trade deficit escalating to $10.9 billion in July 2024 from $8.8 billion in July 2023. Crude oil imports alone accounted for $11.4 billion.
Price Trends in July 2024
Brent Crude averaged $85.31 per barrel in July 2024, marking a notable increase from previous months and the prior year. Similarly, the Indian basket crude price averaged $84.15 per barrel, exerting pressure on the country’s import bill.
Get High-Speed Diesel Delivered to Your Doorstep in Umargam, Gujarat: Top Providers Compared
Growth in Petroleum Product Output and Consumption
Driven by strong refinery throughput, petroleum product output rose by 7.1%, reaching 24.4 MMT in July 2024. The fractionators also contributed significantly to this increase. The surge in production aligns with the growing consumption of petroleum products, which saw a 4.8% rise from April to July 2024. Key drivers of this demand include lubricants, aviation turbine fuel (ATF), motor spirit (MS), and liquefied petroleum gas (LPG).
Sustainable Energy Efforts
India continues its efforts toward sustainable energy integration. Ethanol blending in petrol stood at an impressive 15.8% in July 2024, supporting the government’s goals to enhance green energy and reduce carbon emissions.
Conclusion: A Dynamic Energy Sector
While India’s crude oil production shows a downward trend in July 2024, the increase in refinery throughput and rising consumption of petroleum products underscore the resilience of the country’s energy sector. The fluctuating global oil prices and robust domestic demand highlight the complexities of managing India’s energy needs in a rapidly evolving economic environment.