Global oil prices are not likely to push beyond USD 65 per barrel, said Oil Minister Hardeep Singh Puri, while speaking with industry people on the concluding day of the annual CII business summit in New Delhi on Friday.
With more crude oil being available in countries like Brazil, Guyana, Suriname, Canada, and Argentina, the minister said ample availability will cater to India’s needs – despite the country being the world’s third largest in oil import and consumption.
“My sense is that with more supplies becoming available, prices will be close to USD 65, not USD 80 per barrel,” Puri said, adding the figure is 10 per cent down last year’s number and that lower prices will mean less expenditure on imports.
Throwing light on increasing efforts to raise domestic production, he said over one million square kilometres of sedimentary basins, previously marked as ‘no-go’ zones, have now been opened for exploration, resulting in the coming in of over 37 per cent bids under the Open Acreage Licensing Policy (OALP).
The highlight of Puri’s address was clearly a focus on clean energy driven by policy reforms in exploration and production activities, natural gas infrastructure expansion, and strong targets for biofuels and green hydrogen.
The minister said he hoped India would emerge as a refining hub instead of a teapot refinery. The country’s refining capacity is expected to rise from around 260 million tonnes per annum to reach 309.5 million tonnes by 2028, he added.
Speaking on the significance of the recently passed Oilfields (Regulation and Development) Amendment Act, 2025, Puri emphasised that India has taken a leap in ease of doing business in exploration and production activities with the introduction of a single permit system.
Despite importing 5.6 million barrels of crude oil per day and spending USD 139 billion on imports last year, domestic reforms are expected to reduce this dependency. The government is encouraging domestic exploration while diversifying import sources from 27 to 40 countries, he informed.
The minister also noted substantial progress in India’s natural gas infrastructure – evident by laying down of 22,000 km of pipelines in 2024 and working toward a target of 33,000 km by 2030. With domestic gas availability improving and global gas prices getting stabilised, there will be more flexibility for industrial and residential use, he stated.
The government’s Ujjwala Yojana Scheme, which was launched in 2016, has around 10.3 crore beneficiaries, said Puri. With over 33 crore Liquefied Petroleum Gas (LPG) connections, the government is committed to making clean cooking fuel accessible to all, he further said.
On the Compressed Biogas (CBG) front, the production of Fermented Organic Manure (FOM) as a by-product remains a key source of revenue for producers. India has set an ambitious target of establishing 5,000 CBG plants, said Puri, adding that ongoing dialogues with state governments are expected to accelerate progress. However, the pace of development will largely depend on land availability and pricing mechanisms.
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