Energy – India’s Rising Fuel Import Dependence Sparks Fresh Political Debate
Energy – India’s growing reliance on imported fossil fuels has once again come under scrutiny, with senior Congress leader Jairam Ramesh questioning the gap between the government’s self-reliance narrative and actual energy trends. His remarks come at a time when global geopolitical tensions are influencing fuel markets and domestic policy decisions.
Import Dependence Figures Raise Questions
In a statement shared on social media, Ramesh pointed to data indicating a steady rise in India’s dependence on imported energy over the past decade. According to the figures he cited, crude oil import dependence increased from 84 percent in 2014–15 to nearly 90 percent in 2024–25. Similarly, reliance on imported liquefied petroleum gas (LPG) rose from 46 percent to 62 percent during the same period.
He argued that these trends appear inconsistent with the government’s emphasis on achieving self-sufficiency in key sectors. The data, he suggested, reflects structural challenges in reducing external dependence despite policy initiatives promoting domestic production.
Questions Around Natural Gas Commitments
Ramesh also drew attention to past claims related to natural gas exploration. He referred to an announcement made in 2005 regarding a major gas discovery in the Krishna-Godavari basin by the Gujarat State Petroleum Corporation (GSPC), which was projected as a turning point for India’s energy independence.
However, he highlighted that subsequent audits by the Comptroller and Auditor General (CAG) between 2011 and 2016 raised serious concerns about the project. These reports, he noted, pointed to financial irregularities amounting to around ₹20,000 crore. The issue eventually led to the merger of GSPC with ONGC in 2017.
According to Ramesh, the expectations created around the gas discovery were never fully realized, leaving unresolved questions about long-term energy planning and accountability.
Government Adjusts Fuel Duties Amid Global Pressure
On the policy front, the central government has recently revised excise duties on petroleum products. The excise duty on petrol has been reduced to ₹3 per litre, while diesel has been brought down to zero. Additionally, a windfall tax of ₹21.5 per litre has been imposed on diesel exports.
These changes come in response to rising global crude prices, influenced by escalating tensions in West Asia. The ongoing conflict involving the United States, Israel, and Iran has disrupted supply routes, particularly the Strait of Hormuz, a critical passage for global oil shipments. Before the crisis, India sourced approximately 12 to 15 percent of its crude oil through this route.
Impact on Oil Companies and Consumers
The reduction in duties is expected to ease financial pressure on oil marketing companies, which have been facing increased costs due to higher crude prices. Despite the tax adjustments, retail prices of petrol and diesel have not seen immediate changes, indicating that the government is balancing fiscal considerations with market stability.
The introduction of a Special Additional Excise Duty on Aviation Turbine Fuel (ATF), with a reduced effective rate of ₹29.5 per litre after exemptions, is another measure aimed at managing sector-specific challenges.
Government Assures Adequate Supply
Amid concerns about supply disruptions, the government has assured citizens that fuel availability remains stable across the country. Officials have emphasized that petrol pumps are operating normally and that there is no need for panic buying.
Authorities also confirmed that refineries are functioning at high capacity, supported by sufficient crude inventories. Domestic LPG production has been scaled up to meet consumption needs, further reinforcing supply stability.
The government has urged the public to rely on verified information and avoid spreading or acting on unconfirmed reports, especially during a period of heightened global uncertainty.