Yes we produce more crude oil than we need in all its constituents but we are lacking in the refining capacity to refine the needed capacity to meet the need for petrol, kerosene and others.
Like it or leave it, Growth needs power and that power comes from diverse sources chiefly crude oil, so to not shoot yourself in the foot, we have to meet the demand from any source hence if we can't refine ourselves, we have no choice but to import.
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