India’s crude oil import bill has risen in the current fiscal year
New Delhi:
The country’s crude oil import bill is set to exceed $100 billion in the current fiscal year, which would be nearly double last year’s as global crude oil prices hit seven-year highs.
According to data from Petroleum Planning and Analysis Cell (PPAC), India spent $94.3 billion on oil imports in the first 10 months (April-January) of the current fiscal year (2021-22).
In January 2022 alone, when oil prices started to rise, it spent $11.6 billion. By comparison, the country had spent $7.7 billion on oil imports in January 2021.
This month, oil prices crossed $100 a barrel and at this rate, India, which imports 85 percent of its crude oil needs, is expected to nearly double its import bill to $110-115 billion by the end of fiscal year 2021-2022. .
The imported crude oil is converted into value-added products such as gasoline and diesel in oil refineries before being sold to cars and other users. India has a surplus of refining capacity and exports some petroleum products, but is short of production of cooking gas LPG, which is imported from countries such as Saudi Arabia.
Imports of petroleum products in April-January 2021-2022 amounted to fiscally 33.6 million tons worth USD 19.9 billion. On the other hand, 51.1 million tons of petroleum products were also exported for $33.4 billion.
India had spent $62.2 billion on imports of 196.5 million tons of crude oil in the previous fiscal year 2020-21, as global oil prices remained low in the wake of the COVID-19 pandemic.
In the current year, it has already imported 175.9 million tons of crude oil.
Meanwhile, Brent spot prices rose to a more than seven-year high of $105.58 a barrel on Feb. 24, amid fears of supply disruptions after Russia invaded Ukraine. After that, it dropped to less than $100, as those fears subsided when the West kept energy trade out of the sanctions imposed on Russia.
The higher crude oil import bill is expected to affect macroeconomic parameters.
