On Agenda
Diversified oil import sources, affordability key concern for govt
This story was originally published at 16:09 IST on 13 January 2025
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--Oil secy: Formed panel to look at roadmap once 20% ethanol blending aim met
--Oil secy: Diversifying sources of oil supply key for India
--CONTEXT: Oil secy Jain addressing media at India Energy Week 2025
--Oil secy: Oil availability, affordability concerns due to high consumption
NEW DELHI – With India's huge oil consumption and its dependency on imports to cater to that, the government's concern and key task at hand is to diversify its sources of import, Pankaj Jain, secretary in the Ministry of Petroleum and Natural Gas, said Monday. "We continue to look for diversity of countries from where we can import from," he said.
More than 87% of India's domestic demand for crude oil is met through imports. As part of its diversification efforts, the country is now buying crude from 39 sources, up from 27 earlier. Jain's comments on diversification come ahead of the India Energy Week 2025 event, to be organised next month in the national capital, where the government is hopeful of taking forward bilateral oil deals with multiple countries.
Besides diversifying sources of oil supply, Jain said that the government continues to see some stress in terms of oil availability and affordability. "We continue to argue for pricing that is reasonable and affordable," he said. While oil availability is not an issue so much in particular, he said ensuring the availability of cheaper oil was the prime concern.
Since the Russia-Ukraine war broke out, India has depended heavily on Russian crude oil at a time in which oil prices shot up owing to the geopolitical situation. Brent crude oil futures have traded in the range of $75-$82 per barrel in the last two weeks.
To reduce dependence on crude oil, the government has set a target of achieving 20% blending of ethanol with petrol this year. As of October, India achieved 14.6% blending. Jain said that considering India's advancement in ethanol blending and the expected adherence to the deadline, the government had formed a committee to determine the roadmap of ethanol blending beyond 2025. End
US$1 = INR 86.58
Reported by Priyasmita Dutta
Edited by Avishek Dutta
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