In 2025, the Ministry of Petroleum and Natural Gas implemented a multi-pronged strategy to ensure affordable and sustainable energy, encompassing infrastructure expansion, promotion of clean fuels, and strengthening strategic reserves for energy security. Energy security refers to the uninterrupted availability of energy sources at affordable prices for a nation, ensuring its economic stability, national security, and sustainable development.

Summary

¨     In 2025, India adopted a multi-faceted energy strategy integrating infrastructure expansion, clean fuels, and regulatory reforms.

¨     Despite diversification efforts, high import dependence, geopolitical risks, and scarcity of critical minerals remain major challenges.

¨     Domestic production, including clean energy, storage, mineral self-reliance, and geostrategic diplomacy are crucial for long-term energy security.

What were the key achievements of the Ministry of Petroleum and Natural Gas in 2025

¨     Availability of Clean Cooking Fuel: Reached approximately 10.35 crore beneficiaries under the Pradhan Mantri Ujjwala Yojana (PMUY). 25 lakh new connections were sanctioned for FY 2025-26, while a simplified ‘deprivation declaration’ process eased enrollment.

¨     With a subsidy of ₹300 per cylinder for PMUY beneficiaries, the average refill consumption increased to approximately 4.85 per year in FY 2025-26, indicating sustained usage of LPG.

¨     Expansion of Marketing Infrastructure: Over 90,000 retail outlets were digitized, over 8,400 CNG stations and approximately 1.57 crore PNG connections were established. 25,429 km of gas pipelines are operational (with an additional 10,459 km under construction). • Clean Mobility and Fuels: Over 27,400 electric vehicle (EV) charging stations have been established. 4,000 energy stations are planned as multi-fuel hubs, of which 1,064 are already operational.

¨     Gas Grid and Tariff Reforms: The integrated pipeline tariff system (One Nation, One Grid, One Tariff) covers approximately 90% of pipelines, reducing regional cost disparities.

¨     Biofuels and Sustainable Aviation Fuel (SAF): Ethanol blending reached 19.24% in Ethanol Supply Year (ESY) 2024-25.

¨     Blending of Compressed Bio-Gas (CBG) has been mandated from FY 2025-26. A roadmap for Sustainable Aviation Fuel (SAF) has also been established, with blending targets of 1-5% from 2027 onwards.

¨     Upstream Reforms: The Oilfields (Regulation and Development) Amendment Act, 2025 and the Petroleum and Natural Gas Rules, 2025 have been implemented. Blocks covering an area of ​​over 3.78 lakh sq km have been allocated under the Hydrocarbon Exploration and Licensing Policy (HELP), 2016, attracting committed investments of approximately US$ 4.36 billion.

¨     Strategic Reserves: Phase-II facilities of Strategic Petroleum Reserves (SPR) have been advanced, strengthening energy security against supply shocks.

¨     India's SPR facilities are located in Visakhapatnam (Andhra Pradesh), Mangaluru (Karnataka), and Padur (Karnataka). Phase-II includes a new facility at Chandikhol (Odisha) and an expansion at Padur.

Major Challenges in Achieving Energy Security for India

High and Rising Import Dependence: India meets approximately 85% of its crude oil and 50% of its natural gas requirements through imports. Domestic crude oil production declined to 28.7 million tonnes (MT) in FY 2024-2025 (from 29.4 MT in FY 2024), leading to significant vulnerability to global price shocks. This risk was exemplified during the 2022 Ukraine crisis,