India’s oil import bill doubles to $119 billion in FY22
< img src="https://bharatsuchana.com/wp-content/uploads/2022/04/7iZXnu.jpg"class="ff-og-image-inserted"> NEW DELHI: India’s unrefined oil import bill almost doubled to$119 billion in the that ended on March 31, as energy costs soared internationally following the return of demand and war in Ukraine. India, the world’s third greatest oil consuming and importing country, spent$ 119.2 billion in 2021-22( April 2021 to March 2022), up from$62.2 billion in the previous fiscal year, according to data from the oil ministry’s Petroleum Planning & Analysis Cell(PPAC). It invested$13.7 billion in March alone, when oil prices surged to 14-year high. This compared with$8.4 billion spending in the exact same month last year. Oil prices started to rise from January and rates crossed$100 per barrel in the following month prior to touching$140 per barrel in early March. Rates have since declined and are now around$ 106 per barrel. According to PPAC, India imported 212.2 million tonnes of petroleum in 2021-22, up from 196.5 million tonnes in the previous year. This was, nevertheless, lower than pre-pandemic imports of 227 million tonnes in 2019-20. The costs on oil imports in 2019-20 was$101.4 billion. The imported petroleum is become value-added items like gas and diesel at oil refineries, prior to being offered to autos and other users. India, which is 85.5 percent depending on imports to fulfill
crude oil needs, has a surplus refining capacity and it exports some petroleum items however is brief on production of cooking gas LPG, which is imported from countries like Saudi Arabia. The nation taken in 202.7 million tonnes of petroleum items in 2021-22, up from 194.3 million tonnes in the previous fiscal, however lower than pre-pandemic 214.1 million tonnes demand in 2019-20. Import of petroleum products in 2021-22 fiscal was 40.2 million tonnes worth $24.2 billion. On the other hand, 61.8 million tonnes of petroleum items were also exported for $42.3 billion. Besides, India also invested$11.9 billion on import of 32 billion cubic meters of LNG in 2021-22. This compared to $7.9 billion invested on import of 33 bcm of gas in the previous fiscal and $9.5 billion on import of 33.9 bcm in 2019-20. Net oil and gas import expense, after adjusting for exports, pertained to$113 billion, up from$ 63.5 billion in 2020-21 and $92.7 billion in 2019-20. India had invested$62.2 billion
on the import of 196.5 million tonnes of crude oil in the previous 2020-21 financial, when worldwide oil costs remained controlled in the wake of the Covid-19 pandemic. Greater petroleum import expense is anticipated
to damage the macroeconomic parameters. The country’s import reliance has increased owing to a steady decrease in domestic output. The country produced 32.2 million tonnes of crude oil in 2019-20, which fell to 30.5 million tonnes in the following year and to 29.7 million tonnes in FY22, the PPAC data showed. According to PPAC, India’s oil import dependence was 85 per cent in 2019-20, which declined marginally to 84.4 percent in the following year before reaching 85.5 per cent in 2021-22. Released at Sun, 24 Apr 2022 10:30:50 +0000