Energy is the backbone of any country’s growth, powering homes, industries, and vehicles. In India, a fast-growing economy with over 1.4 billion people, energy comes from many sources like coal, oil, natural gas, hydropower, and renewables such as solar and wind. Among these, crude oil plays a big role. But what exactly is its share in India’s total energy mix, and why does it matter? Let’s break it down in simple terms.
What is an Energy Mix?
Think of the energy mix as a recipe for how a country meets its energy needs. Just like a chef uses different ingredients to cook a meal, India uses a variety of energy sources to keep its economy running. These sources include coal (used mostly for electricity), crude oil (turned into petrol, diesel, etc.), natural gas, and cleaner options like solar and wind power. The “share” of crude oil tells us how much of this energy recipe depends on oil compared to everything else.
Crude Oil: What is it?
Crude oil is a thick, dark liquid found underground. It’s a fossil fuel, meaning it comes from ancient plants and animals buried millions of years ago. Once extracted, it’s refined into useful products like petrol, diesel, kerosene, and even plastics. In India, crude oil is especially important for transportation (cars, trucks, planes) and industries.
How Much of India’s Energy Comes from Crude Oil?
To figure out crude oil’s share, we look at something called the “Total Primary Energy Supply” (TPES). This is the total amount of energy India uses before it’s converted into electricity or fuel. In 2022-23, India’s TPES was around 809 million tonnes of oil equivalent (Mtoe)—a unit that measures all energy sources as if they were oil.
Out of this, crude oil contributed about 239 Mtoe, or roughly 29.5% of the total energy mix. That’s a big chunk! Coal, by comparison, is the largest player at around 45%, while natural gas is about 6%, and renewables and hydropower together make up a smaller but growing portion. So, crude oil is the second most important ingredient in India’s energy recipe, after coal.
Why Does Crude Oil Matter So Much?
India relies heavily on crude oil because it powers things that other energy sources can’t easily replace yet. For example:
- Transportation: Most cars, trucks, and planes run on petrol or diesel made from crude oil. Electric vehicles are growing, but they’re still a small part of the picture.
- Industries: Factories use oil products like diesel for machinery or naphtha for making chemicals and plastics.
- Daily Life: Kerosene (from crude oil) is still used for cooking and lighting in some rural areas, though LPG (liquefied petroleum gas) is taking over.
But here’s the catch: India doesn’t produce much crude oil itself. In 2023-24, it made only about 29 million tonnes domestically, while it consumed over 232 million tonnes. That means over 87% of its crude oil is imported from countries like Russia, Iraq, and Saudi Arabia. This dependence makes oil a critical—and sometimes risky—part of India’s energy story.
How Does This Compare Over Time?
Crude oil’s share in India’s energy mix has stayed fairly steady, hovering around 29-30% in recent years. However, the total amount of energy India uses is growing fast as the economy expands. Between 2010 and 2023, oil consumption jumped by about 2.8% every year, reaching 245 million tonnes in 2023. Meanwhile, coal still dominates because it’s cheap and abundant in India, but the government is pushing for cleaner options like solar and wind to reduce reliance on fossil fuels like oil.
The Future: Will Crude Oil’s Share Change?
India’s energy mix is slowly shifting. The government wants to cut oil imports and boost cleaner energy. Here’s how:
- Renewables: Solar and wind power are growing fast. India aims to get 50% of its energy from renewables by 2030.
- Natural Gas: The plan is to raise natural gas’s share to 15% by 2030 (from 6% now), as it’s less polluting than oil.
- Ethanol Blending: Mixing ethanol (made from sugarcane) into petrol reduces the need for crude oil. India hit 10% blending in 2022 and targets 20% by 2025-26.
- Electric Vehicles (EVs): More EVs on the road mean less demand for petrol and diesel.
If these efforts succeed, crude oil’s share could drop over time. But for now, it remains a key player because replacing it fully is a slow and costly process.
Why Should You Care?
Crude oil’s role affects everyday life in India. High oil imports mean spending billions of dollars abroad, which impacts the economy. It also ties India to global oil prices—when they spike, fuel costs rise, and so does inflation. Plus, burning oil adds to air pollution and climate change, big challenges for a country like India with crowded cities and vulnerable ecosystems.
Understanding this helps us see why India’s leaders talk about “energy security” and “clean energy transitions.” It’s about balancing growth, affordability, and a healthier planet.
Why This Topic is Important for UPSC & State PCS Exams
For aspirants of UPSC and State PCS exams, this topic is a goldmine. It pops up in multiple papers:
- General Studies Paper I (Geography): Energy resources and their distribution are key themes.
- General Studies Paper II (Governance): Policies like ethanol blending or renewable energy targets test your grasp of government initiatives.
- General Studies Paper III (Economy & Environment): Crude oil’s economic impact (imports, inflation) and environmental effects (pollution, climate change) are hot topics.
- Essay Paper: You might write on “Energy Security in India” or “India’s Transition to Clean Energy.”
- Current Affairs: Oil prices, Russia-Ukraine conflicts, and India’s import strategies often make headlines.
Plus, it’s practical—questions might ask you to analyze India’s energy challenges or suggest solutions, testing both knowledge and critical thinking. Knowing the numbers (like 29.5% share) and trends (like EV growth) gives you an edge.
