RoydadNaft –  India’s crude oil production in August fell by 3.4% on the year to 2.4 million metric tons, equal to some 17.6 million barrels. Fuel production was also down, more modestly, the Economic Times reported.

The bulk of the August crude output came from Oil and Natural Gas Corporation, the state-owned major, which accounted for a share of 1.6 million tons. Crude oil processing in India in August fell 1.9% on the year to 21.5 million tons.

As a result of the decline in domestic production, crude oil imports to India jumped by 6.4% in August, driving a 3.3% increase in oil imports over the period between April and August, as the country’s economy continues expanding.

The price of August oil and gas imports also rose on the year, from $9 billion in 2023 to $11.4 billion this year. The increase, per the Indian Petroleum Ministry, was driven by higher liquefied petroleum gas and lubricant imports.

The world’s third-largest crude oil importer, India, relies on imports to cover more than 85% of its petroleum consumption, which is growing in lockstep with economy and refinery expansion plans.

Over the past two years, India has become a key buyer of Russia’s oil, which is selling at a discount because of the sanctions and embargoes on Russian crude exports to Western countries. Given India’s sensitivity to oil prices, the development was only to be expected.

The country is set to become a driver for 35% of future energy demand, too, according to petroleum minister Hardeep Puri. Speaking at the Gastech conference in Houston this month, Puri said “If you say that global demand is increasing by one percent, ours is increasing by three times that. In the next two decades, 35% of the increase in global demand will come from India.”

At the same time, the official said that India wants to succeed with the energy transition as well. “We will manage and succeed…on the green transition,” Puri said. “That’s the part with which I am most satisfied.”