India’s crude oil import bill has increased in the current financial year
New Delhi:
The country’s crude oil import bill will surpass the $100 billion mark in the current financial year, nearly double that of last year, as global crude prices hit a seven-year high.
According to data provided by the Petroleum Planning and Analysis Organization (PPAC), India spent $94.3 billion in the first 10 months (April-January) of the current fiscal (2021-22). ) for oil imports.
It spent $11.6 billion in January 2022 alone when oil prices started to rise. Compared to this, the country spent $7.7 billion on oil imports in January 2021.
This month, oil prices have crossed $100/barrel and at this rate, India, which imports 85% of its crude oil needs, is expected to nearly double its import bill to 110-115 billion. USD at the end of fiscal year 2021- 2022.
Imported crude oil is turned into value-added products such as gasoline and diesel at refineries, before being sold to cars and other users. India has a surplus of refining capacity and it exports some petroleum products but has a shortfall in production of LPG cooking gas, which is imported from countries like Saudi Arabia.
Imports of petroleum products in the April-January 2021-22 fiscal year were 33.6 million tons, valued at $19.9 billion. On the other hand, 51.1 million tons of petroleum products were also exported with a value of 33.4 billion USD.
India spent $62.2 billion to import 196.5 million tonnes of crude oil in the previous fiscal 2020-21 as global oil prices continued to fall in the wake of the COVID-19 pandemic.
This year, the country imported 175.9 million tons of crude oil.
Meanwhile, the spot price of Brent crude rose to a seven-year high of $105.58 a barrel on February 24 on concerns about supply disruptions following Russia’s invasion of Ukraine. It fell below $100 later as those concerns eased as the West kept energy trade free from sanctions on Russia.
Higher crude oil import bills are expected to dampen macroeconomic parameters.
