Minister Murli Deora addressed the 19th World Petroleum Congress in Madrid saying consumption in India is lower relative to other nations that heavily subsidize their natural resources.

"I wish to take this opportunity to set the record straight. While China and India account for over one-third of the global population, their combined oil consumption is less than one-eighth of the world's consumption," he said.

The refining capacity in India is higher than its energy demands and the allegations that India is somehow to blame for high energy prices is "completely devoid of merit," the minister said.

He added that India set aside portions of its budget to explore new oil and gas fields as well as boost its production and investing in alternative energy sources, The Press Trust of India reported.

"Geographical location between East Asia and the Middle East makes India ideally placed to emerge as an export hub for the growing Asia Pacific market," he said.