In the fiscal year that ended on March 31, India’s crude oil import bill then doubled to $119 billion, as global energy prices skyrocketed following the restoration of demand and the crisis in Ukraine.
According to data from the energy ministry’s Petroleum Planning & Analysis Cell, India, the world’s third-largest oil consumption and importing nation, spent $119.2 billion in 2021-22 (April 2021 to March 2022), up from $62.2 billion the previous fiscal year (PPAC).
Oil prices began to rise in January, and by the following month, they had above $100 per barrel, before reaching $140 per barrel in early March. Prices have subsequently fallen and are presently hovering around $106 per barrel.
Before being supplied to vehicles and other consumers, imported crude oil is refined into value-added products such as gasoline and diesel at oil refineries.
India has a surplus of refining capacity while being 85.5 per cent reliant on imports to satisfy its crude oil needs. It exports certain petroleum products but relies on imports of cooking gas LPG from countries like Saudi Arabia.
Petroleum product imports were 40.2 million tonnes worth $24.2 billion in fiscal 2021-22. 61.8 million tonnes of petroleum products, on the other hand, were exported for $42.3 billion.
After accounting for exports, the net oil and gas import cost reached $113 billion, up from $63.5 billion in 2020-21 and $92.7 billion in 2019-20.
In the preceding fiscal year 2020-21, India spent $62.2 billion purchasing 196.5 million tonnes of crude oil as global oil prices remained low in the aftermath of the COVID-19 epidemic.
An increased crude oil import bill is projected to have a negative impact on macroeconomic indices.