PR No – 126
20th June, 2025
New Delhi
PHDCCI Releases Strategic Report on India’s Oil and Gas Sector: Emphasizes Mitigation of Supply Chain and Price Volatility Risks
The PHD Chamber of Commerce and Industry (PHDCCI) has released a comprehensive report titled “India Oil and Gas Sector and Strategy to Mitigate Supply Chain and Price Volatility Risks,” presenting a forward-looking analysis of India’s energy landscape, supply chain vulnerabilities, and actionable policy measures to bolster energy security.
With India projected to grow at over 6% annually and its primary energy demand increasing at a CAGR of 5.5%, the report highlights the critical importance of safeguarding oil and gas supply chains amid rising geopolitical and market uncertainties.
Key Highlights:
- Heavy Reliance on Imports: Over 85% of India’s crude oil needs are met through imports, positioning the country as the world’s third-largest oil importer.
- Supply Chain Risks: Geopolitical instability, especially in chokepoints like the Hormuz Strait and Suez Canal, threatens consistent crude supply and pricing.
- Price Volatility Outlook: Brent crude prices are forecast to decline from $81/bbl in 2024 to $66/bbl in 2026, driven by supply expansion outside OPEC+ and moderate demand growth.
Strategic Recommendations to Mitigate Risks of supply shortages and price volatility:
- Strategic Petroleum Reserves: Expansion of reserves from 5.33 MMT to an additional 6.5 MMT through PPPs in Chandikhol and Padur.
- Market Diversification: Sourcing crude and LNG from a wider geography including Africa, the Americas, and Australia.
- Fuel Diversification: Promoting ethanol, compressed bio-gas, biodiesel, and green hydrogen as part of India’s clean energy shift.
- Renewable Push: Scaling up renewable capacity to 500 GW by 2030 with over 200 GW already achieved as of 2024.
- Ease of Doing Business in Upstream Sector: Policy reforms including simplified contract approvals, transparent E&P operations, and revised pricing mechanisms for domestic gas.
Quote from President PHDCCI, Mr. Hemant Jain :
“India’s economic growth trajectory demands resilient and diversified energy sources. This report provides an integrated roadmap to navigate future energy challenges while ensuring affordability, accessibility, and sustainability.”
The report emphasizes that proactive strategic planning and timely policy implementation are essential for India to shield itself from external shocks and to ensure long-term energy security.
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Warm Regards,
Media Division, PHDCCI