New Delhi: Global oil prices are likely to stay around $65 per barrel - down 10 per cent over the previous year - as ample supplies are available, Oil Minister Hardeep Singh Puri said on Friday. India is the world’s third largest oil importing and consuming country, and lower prices mean it will have to spend less on imports.
“My sense is that with more supplies becoming available, prices will be close to $65, not $80 per barrel,” Puri said at the CII Annual Business Summit here. He said more crude oil will be available in countries like Brazil, Guyana, Suriname, Canada, and Argentina.
On efforts being made to raise domestic production, he said, over 1 million square kilometres of sedimentary basins, previously marked as ‘no-go’ zones, have now been opened for exploration. This has resulted in over 37 per cent of bids under the Open Acreage Licensing Policy (OALP) coming from these newly opened areas. Puri highlighted progression towards a cleaner, more secure energy future, driven by policy reforms in exploration and production activities, natural gas infrastructure expansion, and strong targets for biofuels and green hydrogen.
Stating that India will be one of the refining hubs, he said the trend was towards the emergence of refining hubs instead of teapot refineries. India’s refining capacity is expected to rise from around 260 million tonnes (MT) per annum to reach 309.5 MT by 2028, he said. 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 the 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 $139 billion last year on imports, domestic reforms are expected to reduce this dependency. The government is encouraging domestic exploration while diversifying import sources from 27 to 40 countries. Puri also noted substantial progress in India’s natural gas infrastructure. With 22,000 km of pipelines laid as of 2024, the country is on track to reach its target of 33,000 km by 2030. Domestic gas availability is improving, and global gas prices have stabilised, offering more flexibility for industrial and residential use.