Why India’s oil marketing companies are losing over Rs 500 crore daily

[huanghong]

India itself produced 14.08 BCM of natural gas in Apr-Aug FY27, almost the same as the 14.78 BCM of LNG imported during that period. So, half the gas is already coming from home.

Indian refineries have cranked LPG production up to around 44,000 tonnes/day, nearly 20% above August levels and during the worst phase of the crisis India showed it could push refinery LPG production much higher by diverting C3/C4 streams.

At the same time cargoes were pulled in from the US, Algeria, Russia, Canada, Norway, Australia etc. instead of waiting around for Gulf supply.

UAE supply is recovering, UAE LPG has jumped back to around 212,000 bpd in September while expensive long haul US spot purchases have fallen sharply. India is buying nearby Gulf LPG when it's cheap, keep US and others open so one chokepoint can't screw the whole supply again.

And people are slowly moving away from LPG cylinders too. India has around 1.75 crore household PNG connections and GoI is pushing that network further. PNG gas comes straight through the city pipeline.

So what exactly are you making fun of? India produces its own gas, its refineries produce LPG, it imports from multiple regions, Gulf supply is returning, US supply is being kept as backup/diversification and PNG is spreading to more homes.

@Nimble

India's natural gas consumption is truly astonishingly low. China produced 264.1 bcm last year and still needs to import large quantities, yet unexpectedly India can meet its entire national demand with just such a small amount of natural gas.

Considering that India's population exceeds China's, does that mean most Indians simply don't consume natural gas at all?

 

[NeptunesVortex]

India's natural gas consumption is truly astonishingly low. China produced 264.1 bcm last year and still needs to import large quantities, yet unexpectedly India can meet its entire national demand with just such a small amount of natural gas.

Considering that India's population exceeds China's, does that mean most Indians simply don't consume natural gas at all?

China consumes around 427 bcm because gas is built much deeper into the Chinese energy system. China use huge amounts for industry, urban gas, power generation, chemicals and fertilizer and northern China has another enormous demand that India mostly doesn't even have: winter space heating. That's one reason Chinese residential/commercial gas demand exploded over the last decade.

India simply built its energy system differently. Electricity here is still dominated by coal, with renewables, hydro and nuclear supplying much of the rest. Coal alone generated roughly 1,250 TWh in FY2025-26. Gas-fired generation is relatively small.

As far household cooking is concerned, India has around 330 MILLION active domestic LPG connections but only about 17.5 million domestic PNG connections. Indians obviously cook overwhelmingly with LPG rather than piped natural gas.

India imports LNG as well. China produced roughly 262 bcm and consumed 427 bcm because its gas intensive economy requires the difference to be imported. India's gas market is simply much smaller.

IEA expects Indian gas demand to rise to around 103 bcm by 2030, with industry, city gas, refining and other sectors driving much of the increase.

The basic mistake here is treating natural gas consumption like food consumption per person. China happens to route a much bigger chunk of those things through natural gas. India routes much more through coal, LPG, petroleum products and electricity while renewables are expanding rapidly.

 

[Raj-Hindustani]

So india is not letting it's population feel the effect of global surge in oil price ! How dare they !!
--- Chinese Butthurt Pro Ultra Max !

When Indian refinery companies were making profits by buying discounted Russian oil and exporting refined diesel to Europe and earning dollars, hardly anyone was talking about it.

The government is supposed to protect the interests of ordinary people too. The burden shouldn't always be passed on to the common people while businesses do not benefit from unfavourable market conditions.

 

[sunny405]

India is short-sighted.When oil prices were low, they did not stockpile but instead resold cheap Russian oil to Europe, making a small profit from the price difference.When oil prices rise, I have no reserves and need to purchase oil at high prices.In contrast, China buys large quantities when oil prices are low, then stores most of it and sells only a small portion.When oil prices soared, China released its reserves for domestic use, establishing a crude oil reserve of up to 1.4 billion barrels.

 

[retaxis]

India right now:

Severe liquefied petroleum gas (LPG) shortages and soaring black-market prices driven by conflict in the Middle East are forcing many households and small businesses in India to temporarily revert to firewood and other traditional solid fuels. [1, 2]

Causes of the Cooking Gas Crisis

• • Supply Disruptions: Ongoing conflict in the Middle East has restricted shipments through vital shipping lanes like the Strait of Hormuz, severely tightening India's imported LPG supplies. [1]
  • Black Markets and Price Surges: Shortages have triggered long lines, rationing, and skyrocketing prices on unofficial markets, making gas unaffordable for low-income daily wage earners and small eateries. [1, 2]
  • Policy Priorities: Authorities have directed refineries and distributors to prioritize remaining gas supplies for residential households over commercial enterprises, forcing many small restaurants to shut down or switch fuels. [1, 2]

Alternative Fuels Being Used

• • Firewood and Chulhas: Families and street vendors are turning back to traditional clay or mud stoves (chulhas) burning wood, agricultural waste, or dried biomass. [1, 2]
  • Coal and Kerosene: Urban households and small food stalls are increasingly utilizing coal, charcoal (sigri stoves), or distributed kerosene to maintain basic cooking needs. [1, 2]