New Delhi – In a strategic move to enhance domestic oil and gas production and reduce reliance on imported crude oil, the Government of India has introduced a series of policy reforms. These measures aim to attract investment, boost exploration, and ensure stable fuel prices for consumers.
To accelerate hydrocarbon exploration and development, the government has implemented several key initiatives over the past decade. The Production Sharing Contract (PSC) Reforms (2014) and the Discovered Small Field Policy (2015) were introduced to fast-track the monetization of small and discovered oil and gas fields.
The Hydrocarbon Exploration and Licensing Policy (HELP) (2016) replaced the previous licensing regime with a more flexible, investor-friendly model, encouraging private sector participation in exploration activities.
Additionally, the National Data Repository (2017) and the National Seismic Programme (2017) have helped in gathering and analyzing crucial geological data to unlock untapped hydrocarbon reserves.
Further, the government has taken steps to maximize production from existing fields. The Policy for Extension of PSCs (2016 & 2017) ensured continued production from mature fields, while the Enhanced Recovery Methods Policy (2018) incentivized the use of advanced extraction techniques.
The Unconventional Hydrocarbons Policy (2018) expanded the scope of exploration to include resources like shale oil, coal bed methane, and gas hydrates, reinforcing India’s energy security.
In an effort to create a more competitive and transparent fuel market, the Natural Gas Marketing Reforms (2020) were introduced, simplifying pricing mechanisms and attracting greater investment in the natural gas sector. The government also reduced royalty rates and implemented a zero-revenue-share model in select offshore basins to attract foreign and domestic investors.
As a result, nearly 1 million square kilometers of previously restricted offshore exploration areas have been opened up for private sector participation.
The government has also taken steps to protect consumers from volatile global oil prices. In 2021 and 2022, excise duties on petrol and diesel were reduced by ₹13/litre and ₹16/litre, respectively, providing much-needed relief.
In March 2024, Oil Marketing Companies (OMCs) further cut retail prices by ₹2 per litre for both petrol and diesel across India. Additionally, measures like diversifying crude import sources, promoting ethanol blending in petrol, and