India’s dependence on fossil fuels has evolved into a broader risk to energy security, with vulnerabilities now extending beyond imports to supply chains, storage capacity, fuel affordability and strategic autonomy, according to a study published on Wednesday by the Council on Energy, Environment and Water (CEEW). The report – Securing India’s Energy Future: Assessing Fossil Fuel Risks through Accessibility, Reliability and Affordability – found that India imported 88% of its crude oil, nearly 48% of its natural gas and about 26% of its coal in 2024. Meanwhile, fossil fuels accounted for more than 28% of the country’s total import bill during 2024-25.
Other concerns raised in the study include India’s dependence on a small number of suppliers. While it said India imports crude oil from about 40 countries, more than 85% comes from just six countries, including Russia and countries in West Asia, leaving the country vulnerable to geopolitical turmoil and supply shocks.
The report also highlighted limited emergency reserves. India’s strategic petroleum reserves can only cover nine to 10 days of net crude oil imports, plus about 64 days of refinery operating stocks. This is much lower than countries such as Japan and South Korea, which hold reserves exceeding 200 days.
“The next phase of India’s energy security must go beyond fossil fuel security to a clear transition plan,” said Hemant Mallya, a fellow at CEEW. He said disruptions in crude oil, LNG, LPG, coal or vital shipping routes could quickly impact cooking fuel costs, transportation prices, fertilizer subsidies, industrial competitiveness and inflation.
The report recommends that a strategic transition to clean energy could serve as a security hedge for India, arguing that clean energy can reduce India’s exposure to imported fossil fuels on an ongoing basis. The study also identified LPG as a major but often overlooked vulnerability. More than 330 million households depend on LPG for cooking, but nearly 95% of supplies depend either directly or indirectly on imports.
The affordability of natural gas also remains a concern. According to the report, if the share of imported gas in urban gas distribution networks increases from 15% to 50%, CNG prices could rise by 15-17% during periods of high global prices.
The report also pointed to continued reliance on imported coke, especially from Australia, as a threat to India’s steel sector.
CEEW claimed that expanding renewable energy, electricity and domestic clean energy manufacturing could reduce exposure to imported fossil fuels. It recommended building strategic reserves of oil, gas and liquefied petroleum gas, accelerating the adoption of electric vehicles where commercially feasible, encouraging electric cooking and preparing a national refinery transition plan to enhance long-term energy security.
