India’s oil & gas sector: Navigating a geopolitical storm

The West Asia crisis significantly disrupted energy markets, pushing Brent crude to USD 117.3/bbl in April 2026 and reducing LNG deliveries by 10% due to Strait of Hormuz disruptions.

India’s import dependence rose to record levels (89.4% for crude, 50.6% for gas), prompting policy action—prioritizing gas allocation, expanding strategic reserves, and boosting regasification capacity.

Despite headwinds, refining remained resilient, with petroleum consumption growing 2.7% YoY in Q4 FY2026. Refiners are diversifying crude sources and increasing high-sulphur crude processing.

Meanwhile, domestic production continues to decline, though reforms aim to revive exploration.

Looking ahead, while geopolitical risks persist, India’s push for energy transition through ethanol blending targets and CGD expansion signals a strategic shift toward cleaner, more secure energy systems.