look news india
Mumbai: The country's crude oil import bill rose 12 per cent year-on-year to $71.30 billion in the first six months of the current financial year, while volumes rose 4 per cent to 12.05 million tonnes, according to data from the Petroleum Planning and From the analysis room.
The import bill in the first half of FY 2024 stood at $63.70 billion and total imports stood at 115.9 million tonnes.
Due to increase in domestic demand and stability in production, import dependence of crude oil increased to 88.20 percent. In the first half of the last financial year, 87.60 percent of the total demand for crude oil was met by imports.
Despite government efforts to increase domestic crude oil production, production has been stagnant for the past decade and dependence on imports is increasing.
Crude oil prices are also experiencing extreme volatility as a result of tensions in the Middle East region. India's imports of cheap crude oil from Russia increased as a result of sanctions imposed on Russia following the attack on Ukraine.
The demand for crude oil in India is expected to increase the most in the current year. According to the latest estimate by the International Energy Agency, India's crude oil demand is expected to increase by two lakh barrels per day in 2024.
India has recommended crude oil exporters to increase production. India will overtake China for the first time in terms of increase in demand for crude oil. Falling crude oil prices in early 2024 were positive for India, but Israel-Iran tensions have worsened the situation again.