Domestic crude oil production unchanged in June

In June, India’s domestic crude oil production remained steady at 2.4 million metric tonnes (MMT) compared to the same period last year, according to data released by the Oil Ministry on July 20. The Petroleum Planning & Analysis Cell (PPAC) reported that Oil and Natural Gas Corporation (ONGC) accounted for 1.59 MMT of production, while Oil India Limited (OIL) and private sector producers contributed 0.27 MMT and 0.56 MMT, respectively.

This steady production level comes as the Indian government continues to emphasize the importance of increasing domestic crude oil and natural gas production to reduce the nation’s heavy dependence on imports. India has been striving to bolster its domestic production capacities to achieve energy security and mitigate the impact of volatile international oil prices.

However, despite efforts to ramp up domestic production, India’s crude oil imports rose by 0.6 percent in June compared to the corresponding period last year. The Indian basket crude price averaged $74.93 per barrel during June 2023, slightly lower than the $74.98 per barrel recorded in May 2023, and significantly lower than the $116.01 per barrel in June 2022. The decline in crude oil prices from the peak of $140 per barrel in March 2022, which was driven by geopolitical tensions, has provided some relief to the Indian economy.