New Delhi: The war in Ukraine and rising global demand have pushed up energy prices, which has had a major impact on India. In the financial year ended March 31 (2021-22), India’s crude oil import bill nearly doubled to ₹119 billion. According to the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Oil, India, the world’s third largest oil consumer and importer, spent USD 119.2 billion in 2021-22 (April 2021 to March 2022). US$ 62.2 billion was spent in the last fiscal.
13.7 billion were spent in March alone. This was after oil prices hit a 14-year high in March. 8.4 billion were spent in the same month last year. Let us tell you that the rise in oil prices started in January and reached near 140 140 per barrel in early March. However, the prices have since fallen and are currently hovering around USD 106 per barrel.
According to PPAC, India imported 212.2 million tonnes of crude oil in 2021-22, up from 196.5 million tonnes last year. However, this is lower than the pre-pandemic imports of 227 million tonnes in 2019-20. Expenditure on oil imports stood at US$ 10101.4 billion in 2019-20. It may be recalled that imported crude oil is converted into value-added products such as petrol and diesel in oil refineries before being sold to automobiles and other consumers.
India is 85.5 percent dependent on imports to meet its crude oil needs, but the country has additional refining capacity and exports some petroleum products. However, the production of LPG is low, which is imported from countries like Saudi Arabia.
The country consumed 202.7 million tonnes of petroleum products in 2021-22 as compared to 194.3 million tonnes in the previous fiscal. However, this is lower than the pre-pandemic demand of 214.1 million tonnes in 2019-20.
Imports of petroleum products in the financial year 2021-22 stood at 40.2 million tonnes, valued at ₹24.2 billion. On the other hand, 61.8 million tonnes of petroleum products worth USD 42.3 billion were also exported.