Nation’s crude oil import invoice is about to cross $100 billion mark within the present monetary yr, which might be nearly double than that of final yr’s, as international crude costs touched seven-year excessive ranges.
In response to knowledge supplied by Petroleum Planning and Evaluation Cell (PPAC), India spent $94.three billion within the first 10 months (April-January) of present fiscal (2021-22) on oil imports.
It spent $11.6 billion in January 2022 alone when oil costs had began to surge. Compared to this, the nation had spent $7.7 billion on oil imports in January 2021.
This month, oil costs crossed $100 per barrel and going at this fee, India, which imports 85 per cent of its crude oil necessities, is predicted to nearly double its import invoice to $110-115 billion by the tip of the fiscal yr 2021-2022.
The imported crude oil is changed into value-added merchandise like petrol and diesel at oil refineries, earlier than being offered to vehicles and different customers. India has surplus refining capability and it exports some petroleum merchandise however is brief on manufacturing of cooking gasoline LPG, which is imported from nations like Saudi Arabia.
Import of petroleum merchandise in April-January of 2021-22 fiscal was 33.6 million tonnes value $19.9 billion. Alternatively, 51.1 million tonnes of petroleum merchandise have been additionally exported for $33.four billion.
India had spent $62.2 billion on import of 196.5 million tonnes of crude oil within the earlier 2020-21 fiscal when international oil costs remained subdued within the wake of the COVID-19 pandemic.
Within the present yr, it has already imported 175.9 million tonnes of crude oil.
In the meantime Brent spot costs surged to an over seven-year excessive of $105.58 per barrel on February 24 on fears of provide disruptions after Russia invaded Ukraine. It has dropped to under $100 thereafter as these fears receded because the West saved power commerce out of sanctions imposed on Russia.
Greater crude oil import invoice is predicted to dent the macroeconomic parameters.