India's Reliance on Imported Oil Remains at 90%

India's dependence on crude oil imports has not decreased as much as expected. Despite a reduction in primary energy import dependence from 47% in FY 2017 to 42% in FY 2025, the country remains highly reliant on imported oil, with 90% of all demand met by purchases from overseas.

This is according to a joint report by the Confederation of Indian Industry (CII) and EY. 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, as the country looks to expand its strategic storage sites to cushion supply shocks.

The Middle East crisis has sent Indian refiners scrambling for alternatives, with record crude oil imports from Russia helping to alleviate the situation. However, India's maximum reserve capacity can only cover eight days of national oil demand, making it one of the most exposed countries to supply shocks.