The country's September crude oil output remained almost stagnant year-on-year and natural gas production fell 6.4 per cent.
The demand for petroleum products in September grew by 6.1 per cent.
Around 80 per cent of the country's hydrocarbon energy requirements are met through imports, as growth in domestic oil and gas output is not proportionate with the growing consumption of petroleum products.
The country's exploration companies produced 3.118 million tonnes of oil in September (3.115 million tonnes in the same month last year). The natural gas output stood at to 3.948 billion cubic metre (4.219 billion cubic metre), according to data released by the Ministry for Petroleum and Natural Gas.
Crude oil output was affected because of drop in production from ONGC's Mumbai High offshore fields. There was just a one per cent rise in production from Cairn India-operated Rajasthan fields.
Oil output from ONGC's Mumbai High offshore fields fell 3.4 per cent in September to 1.349 million tonnes. Production from Cairn India operated Rajasthan fields was at 525,000 tonnes (520,000 tonnes) in September.
Declining production from Reliance Industries-operated East Coast gas fields was the main reason for the drop in natural gas output. The current gas demand is projected to be 200 mscmd.
The transmission and marketing major, GAIL (India) transports 118 mscmd of gas from various sources. Of this, domestically produced gas is 92 mscmd including 29 mscmd from RIL's East Coast fields, remaining 32 mscmd is imported gas. However, with the continued drop in domestic gas output, dependence on imports is expected to increase, according to the industry.
Domestic refiners processed 4.4 per cent more crude oil in September from a year ago at 12.702 million tonnes. Indian Oil Corporation, the nation's largest refiner, turned 20.7 per cent more crude oil into fuel at 4.088 million tonnes.
Hindustan Petroleum Corporation raised output by 33.9 per cent to 1.405 million tonnes.
Reliance Industries Ltd from its first refinery in Jamnagar processed 2.928 million tonnes of crude oil in September, an increase of 7.4 per cent. Reliance does not provide data for its SEZ refinery in Jamnagar. Essar Oil processed 41.5 per cent less crude in September, as its Vadinar refinery was shut down for 35 days for expansion and revamp of some units.
The consumption of petroleum products during the month stood at 11.289 million tonnes (10.638 million tonnes a year earlier). Diesel sales in September stood at 4.605 million tonnes, petrol 1.197 million tonnes and LPG 1.288 million tonnes.