Supply Security
- India Turns to Russia, Brazil, and Venezuela for Crude: Russia remains India’s top supplier, while imports from Brazil, Venezuela, Nigeria, and Angola are surging to replace lost Middle Eastern barrels. The share of Middle Eastern supply of all Indian purchases had also slumped in March and April.1
- India Diversifies Oil Imports to 41 countries: Union Minister for Petroleum and Natural Gas, Mr. Hardeep Singh Puri recently said that India has successfully diversified its crude oil sourcing base to 41 countries amid rising global energy prices and geopolitical risks triggered by the US-Iran conflict.2
- India’s Oil Reserves: At the start of the war, India had around 74 days of oil reserves. On May 13, after completion of 74 days, India still had 60 days of oil reserves. From a future energy security perspective, India will have to significantly enhance its SPR capacities from 17 days to a minimum of 45 days on land.3
Fuel Price Hike
- Fuel Prices Up INR7.5 in 10 Days: Prices of petrol and diesel were increased by INR2.7 to INR2.8 per litre across the country and for all variants on Monday (May 25, 2026), the fourth hike in 10 days. With the latest increase, fuel prices at the pump are up by about INR7.5 per litre since May 15.4
- Price Rise Unlikely to Dent Oil Products Demand: India’s decision to raise fuel prices by a modest amount for the first time in four years is unlikely to dent domestic demand for gasoline and diesel, but refiners could come under pressure to increase pump prices further if global crude oil prices remain elevated in the foreseeable future.5
New Exploration
- Oil Exploration in Andamans: Andaman and Nicobar Islands Lieutenant Governor Mr. D K Joshi has said the offshore oil exploration in the archipelago has gained momentum after decades of inactivity, with early findings indicating promising hydrocarbon potential.6
- Urgency Needed in Oil Exploration: While beefing up investments is essential, India must move to increase production too, as it would reduce import dependency in the near term, ensuring energy security, economic stability and industrial growth. It must be borne in mind that new oil projects have long gestation periods.7
- ONGC US$20 Billion Bet: ONGC is expected to spend about US$18–US$20 billion on hiring deep-water drilling rigs for what could become its largest-ever oil exploration programme. Last month, ONGC floated a tender for these rigs.8
- Government Awarded 172 Oil & Gas Blocks in 10 Years: A decade after India promised to unlock its oil and gas potential through a bold new policy, there has been negligible additional production despite large investments committed by companies and a flurry of exploration activity. This raises serious questions on both policy and execution, according to experts.9
Digitalization
- ONGC Wins Digital Transformation Champion Award: ONGC has been honoured with the Digital Transformation Champion Award at the ICC Technology Excellence Awards. The award highlights ONGC’s efforts in strengthening resilient digital infrastructure and accelerating the adoption of AI and next-generation digital technologies.10
- Reliance Looks Beyond Oil with AI Growth Push: Reliance Industries is using AI, digital infrastructure, retail scale and clean energy manufacturing to frame the next phase of its expansion. The framing comes as investors await the next phase of value creation from Jio Platforms, Reliance’s digital services arm.11
Petrochemical Expansion
- India’s Specialty Chemicals Sector Eyes Global Edge: India’s specialty chemicals industry, among the fastest-growing segments, is tightening its global foothold as policymakers and industry leaders call for deeper collaboration, capacity expansion, and reduced import dependence.12
- Government Urges to Cut Reliance on Petrochem Imports: India has begun assessing the feasibility of locally manufacturing more than 200 petrochemical products that currently rely heavily on imports, as the government looks to reduce external dependence amid rising geopolitical and supply chain risks.13
- India’s Crude-to-Chemicals Push: By transitioning from an import-dependent model to a “crude-to-chemicals” powerhouse, India is ensuring the domestic supply of critical materials for industries such as automotive manufacturing and electronics, which are essential for its systemic growth.14
- Haldia Petrochemicals Back in Black: Haldia Petrochemicals Ltd has returned to profit after a gap of five years as the company reaped the benefit of higher polymer prices in the wake of the West Asia war. The company reported a profit after tax of INR244.8 crore on a standalone basis in the fiscal year concluded in March.15
Natural Gas Market Growth
- ONGC Bets on Gas-Led Growth: ONGC said it expects natural gas to become an increasingly dominant and profitable part of its business as new high-priced gas production ramps up and domestic demand continues to rise. The company now produces and sells more gas than oil, with gas contributing higher earnings because of favourable pricing reforms and lower handling costs.16
- Oil India Discovers New Natural Gas Reserve: Amid the ongoing global energy crisis these days, India’s drive towards energy self-sufficiency has received a major boost from Rajasthan, as Oil India has successfully discovered a new gas-bearing sand in the Dandewala Field of Jaisalmer district.17
- India’s Natural Gas Demand to Surge 4x by FY40: India’s clean energy transition could face a major bottleneck as natural gas demand is expected to rise nearly four times by FY40, even as the country continues to face structural constraints in gas supply infrastructure, according to an infrastructure sector trends report by Equirus.18
- India LNG Storage Capacity Boost:The latest crisis has highlighted India’s limited LNG storage capacity, prompting both the government and industry stakeholders to plan expansions. Petronet LNG stated that the company aims to increase its storage capacity by about 70% by adding new cryogenic tanks at terminals like Dahej, Kochi, and the upcoming Gopalpur facility.19