New Delhi: India’s crude oil production increased 3.3 per cent year-on-year to 15.6 million metric tonnes (MMT) during the first half of FY2025–26, while natural gas output rose 6.4 per cent to 19,306 million standard cubic metres (MMSCM), according to data from the Petroleum Planning and Analysis Cell (PPAC).
Domestic crude output showed an improvement over FY25, supported by higher production from ONGC, OIL, and private and joint-venture fields. At the same time, India’s crude imports rose 5.2 per cent to 127.4 MMT, reflecting steady demand recovery across refining and petrochemical sectors .
Natural gas: modest growth in output, higher imports
Natural gas production in the April–September 2025 period stood at 19,306 MMSCM, up from 18,146 MMSCM in H1 FY25. ONGC contributed 10,330 MMSCM, OIL produced 1,519 MMSCM, and private/joint ventures added 7,457 MMSCM.
India’s LNG imports for the same period increased to 16,312 MMSCM, compared with 14,958 MMSCM in H1 FY25 — a rise of 9 per cent. The share of imported gas in total availability stood at around 46 per cent, underscoring India’s continued reliance on overseas supplies to meet domestic demand .
Petroleum product consumption: up 3.3 per cent year-on-year
Total petroleum product consumption reached 118.9 MMT in the first half of FY26, up 3.3 per cent from 115.1 MMT in the same period last year.
Diesel accounted for the largest share at 45.7 MMT, followed by petrol at 21.5 MMT, LPG at 13.6 MMT, and ATF at 4.2 MMT.
While consumption of transport fuels such as diesel and petrol rose 2–3 per cent, ATF demand showed stronger growth due to increased air traffic. LPG usage continued to expand, supported by household and commercial consumption .
Refinery throughput and imports
India’s refinery throughput — the volume of crude processed — increased by 3.8 per cent to 130.8 MMT during the six-month period.
The country’s crude import dependency stood at 81.4 per cent, slightly higher than FY25, indicating that most of India’s refinery input continues to come from overseas sources.
Public sector refiners accounted for 54 per cent of total crude processing, private refiners 44 per cent, and joint ventures around 2 per cent. The rise in throughput was mainly driven by capacity utilisation across major refineries in Gujarat, Paradip, and Jamnagar .
State and sectoral consumption patterns
Among states, Maharashtra, Uttar Pradesh, and Gujarat were the top petroleum consumers in H1 FY26.
In terms of sectoral use, the transport sector remained the dominant consumer of oil products, while fertilisers, power, and city gas distribution led the demand for natural gas.
Fertiliser plants consumed 10,115 MMSCM, CGD used 7,204 MMSCM, and power generation accounted for 5,635 MMSCM during the period.
Trade balance and pricing
The total import bill for crude oil and petroleum products in H1 FY26 stood at approximately USD 96 billion, up from USD 89 billion in the same period last year, due to both higher volumes and moderate crude prices.
Brent crude averaged around USD 82 per barrel, while the Indian basket averaged USD 80.5 per barrel during the period. Exports of refined products reached 32.3 MMT, generating USD 29.5 billion in value .
LPG coverage and pipeline expansion
The number of active LPG consumers crossed 325 million by the end of September 2025, marking steady growth under the PM Ujjwala Yojana.
India’s natural gas pipeline network reached a total length of 24,623 km, with several new sections commissioned under the Pradhan Mantri Urja Ganga and North-East Gas Grid projects. The total LNG regasification capacity stood at 52.5 million tonnes per annum (MTPA), with utilisation at around 60 per cent .
Energy transition outlook
While the report highlights modest growth in oil and gas output, it also underscores India’s push toward cleaner fuels. Gas-based power generation and city gas distribution continued to expand their share, even as crude import dependence remained high.
The period saw increasing policy emphasis on compressed biogas (CBG) and hydrogen blending, with pilot projects being developed across states.
“India’s oil and gas sector remains central to meeting energy demand while supporting a gradual transition toward cleaner fuels,” the PPAC noted in its overview .
