India's Oil Imports Soar to 90% Amid Rising Demand

India's reliance on imported crude oil has hit a staggering 90%, according to a recent report by the Confederation of Indian Industry (CII) and EY. Despite a slight decrease in primary energy imports from 47% in FY2017 to 42% in FY2025, India remains heavily dependent on foreign oil supplies.

The country's dependence on crude oil imports has been steadily increasing over the years due to rising demand and falling domestic production. The Middle East crisis had a significant impact, prompting Indian refiners to seek alternatives and the government to expand strategic storage sites to hold more reserves.

India's state-owned Oil and Natural Gas Corporation (ONGC) is building a new storage site at Mangaluru to hold about 13 million barrels of oil. This move aims to cushion the country against future supply shocks, given its current maximum reserve capacity can only cover eight days of national oil demand.