The Daily Brief What is oil, actually?
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Mar 13, 2026 A lively dive into crude oil: how it forms, the differences between light and heavy grades, and how refineries turn it into fuels like LPG and diesel. A look at India’s reliance on imports, strategic chokepoints such as the Strait of Hormuz, and inventory dynamics. Then a shift to Maruti’s EV pivot: the new eVitara, battery-as-a-service models, localization challenges, and competitive pressures reshaping carmaking.
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How Crude Becomes Everything We Use
- Crude oil is a layered mix separated by fractional distillation into LPG, naphtha, petrol, kerosene, diesel, fuel oil, and bitumen.
- The distillation column condenses molecules by boiling point, with LPG at the top and bitumen at the bottom, explaining why one source yields many products.
LPG Comes From Gas Too Not Just Refineries
- Natural gas sits above oil in reservoirs and is primarily methane mixed with heavier gases like propane and butane.
- Those heavier gases become LPG during gas processing, so LPG comes from both refineries and gas cleaning.
India Imports Crude But Exports Refined Fuel
- India imports over 83% of its oil and holds about 100 million barrels of stocks, covering roughly 40–45 days of consumption.
- Despite low domestic crude, India built the world's fourth largest refining capacity and exports refined fuels after importing crude.