The report revealed that the total net import bill for oil and gas rose to $11.4 billion in August 2024, up from $9.0 billion in August 2023. The primary drivers of this increase were higher imports of liquefied petroleum gas (LPG), petcoke, and lubricants. During the April-August period of FY 2024-25, crude oil imports also experienced a 3.3% rise, indicating a growing demand as the economy recovers.

On the domestic front, oil and gas production encountered challenges, with Oil India (OIL) and Oil and Natural Gas Corporation (ONGC) reporting lower outputs. This resulted in a 2.9% decrease in indigenous crude oil and condensate production for August 2024. This decline reflects an on-going struggle to enhance domestic output, which is essential for decreasing dependence on unstable global markets.

The refining sector mirrored this downturn, showing a 1.9% decrease in total crude oil processed in August 2024 compared to the previous year. However, despite this monthly decline, the sector recorded a slight 1% increase in processed crude from April to August 2024 compared to the same period last year, suggesting a tentative recovery in refining operations.