Page 42 - Policy Economic Report - July 2025

July 2025 POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

production, developing alternative fuels, transitioning towards a gas-based economy, and aiming to
become a global refining hub by increasing refining capacity to 310 MMTPA by 2028 and expanding
petrochemical capacity to become a US\$ 300 billion industry by 2030.

Despite global geopolitical challenges, Shri Puri noted that India successfully balanced energy availability,
affordability and sustainability — becoming the only major economy to reduce fuel prices even as global
oil prices surged. “We aim to achieve energy independence by 2047 and Net Zero emissions by 2070,” he
affirmed.

The Minister also highlighted the importance of biofuels, mentioning the Global Biofuels Alliance which
now has over 29 countries and 14 international organisations working together to scale up sustainable
biofuels. Domestically, India is accelerating the use of ethanol, compressed biogas (CBG), biodiesel and
sustainable aviation fuel (SAF) as part of its decarbonization roadmap. “India firmly believes the global
energy transition must be just, inclusive and equitable. For 1.4 billion Indians, and billions more across the
Global South, it must also ensure development with dignity,” he said.

Ujjwala Moment at 9th OPEC International Seminar

Shri Puri also shared India’s inclusive approach to meeting energy needs. Over 103 million LPG
connections have been provided to women from economically weaker households under the Pradhan
Mantri Ujjwala Yojana — the world’s largest clean cooking programme — which has greatly improved
energy access and public health.

As a result of these efforts, LPG coverage in India has risen from 55% in 2014 to near-universal access
today. Despite a sharp 58% increase in international LPG prices, PMUY beneficiaries pay only \$6–7 for a
14.2 kg cylinder — about 39% lower than the \$10–11 paid in July 2023 — thanks to significant
government support and oil marketing companies absorbing \$4.7 billion in losses last year to keep prices
affordable.

India Charts Bold Upstream Energy Strategy at Urja Varta 2025

Minister of Petroleum and Natural Gas Minister Puri laid out India’s comprehensive strategy for
strengthening upstream exploration and production (E&P), energy resilience, and international
cooperation while speaking in a fireside chat session organized on sidelines of Urja Varta 2025.

Addressing questions on India’s energy security posture amid global geopolitical disruptions such as the
Russia-Ukraine conflict and tensions in the Middle East, Shri Puri stated that India had proactively
expanded its crude import sources from 27 to 40 countries. This diversification, he said, is a key measure
to ensure uninterrupted energy access during periods of global turbulence. On the topic of Russian oil
imports, he clarified that Russia remains one of the world’s top oil producers with an output exceeding 9
million barrels per day. He warned that a sudden removal of this supply from the global market—out of a
total of approximately 97 million barrels per day—would have created chaos, pushing prices to between
$130–$200 per barrel. Shri Puri categorically stated that India has never purchased any sanctioned cargo
and that Russian oil was not under global sanctions but only a price cap, carefully structured to reflect
ground realities of the international energy supply chain. He credited PM Modi’s leadership for India’s

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