India Broadens Crude Oil Import Sources Amid Rising Demand

India diversifies its crude oil imports from 27 to 40 countries, with Argentina as the latest addition, amid growing energy demands. The government aims to reduce import dependency through increased domestic production and a shift towards alternative and renewable energy sources like natural gas, ethanol, and biodiesel.

In a move to address rising energy demands, India's Petroleum Minister Hardeep Puri announced on Monday that the country has expanded its crude oil import sources from 27 to 40. Speaking at a press conference ahead of the India Energy Week 2025, he highlighted Argentina as the newest addition to India's diverse supplier list.

The minister expressed that the country's import strategy is influenced by factors such as cost benefits and geographical proximity, with major suppliers including the US, Russia, Saudi Arabia, UAE, and Iraq. With over 80% of its crude oil needs reliant on imports, India remains adaptable to sourcing from various global markets.

To mitigate this dependency, the government is boosting domestic crude production and advocating for increased use of natural gas and alternative fuels such as ethanol and biodiesel. S&P Global Commodity Insights forecasts that India's refined crude demand will soar to 5.7 million barrels per day by 2026, as alternative fuels slowly alter global energy consumption patterns.