India's crude oil import bill nearly doubled to USD 119 billion in the fiscal year that ended on March 31, as energy prices soared globally following the return of demand and war in Ukraine.
India, the world's third biggest oil consuming and importing nation, spent USD 119.2 billion in 2021-22 (April 2021 to March 2022), up from USD 62.2 billion in the previous fiscal year, according to data from the oil ministry's Petroleum Planning & Analysis Cell (PPAC).
It spent USD 13.7 billion in March alone, when oil prices surged to 14-year high. This compared with USD 8.4 billion spending in the same month last year.
Oil prices started to surge from January and rates crossed USD 100 per barrel in the following month before touching USD 140 per barrel in early March. Prices have since receded and are now 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 in the previous year. This was, however, lower than pre-pandemic imports of 227 million tonnes in 2019-20. The spending on oil imports in 2019-20 was USD 101.4 billion.
The imported crude oil is turned into value-added products like petrol and diesel at oil refineries, before being sold to automobiles and other users.
India, which is 85.5 per cent dependent on imports to meet crude oil needs, has a surplus refining capacity and it exports some petroleum products but is short on production of cooking gas LPG, which is imported from nations like Saudi Arabia.
The nation consumed 202.7 million tonnes of petroleum products in 2021-22, up from 194.3 million tonnes in the previous fiscal, but 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 USD 24.2 billion. On the other hand, 61.8 million tonnes of petroleum products were also exported for USD 42.3 billion.
Besides, India also spent USD 11.9 billion on import of 32 billion cubic meters of LNG in 2021-22. This compared to USD 7.9 billion spent on import of 33 bcm of gas in the previous fiscal and USD 9.5 billion on import of 33.9 bcm in 2019-20.
Net oil and gas import bill, after adjusting for exports, came to USD 113 billion, up from USD 63.5 billion in 2020-21 and USD 92.7 billion in 2019-20.
India had spent USD 62.2 billion on the import of 196.5 million tonnes of crude oil in the previous 2020-21 fiscal, when global oil prices remained subdued in the wake of the COVID-19 pandemic.
Higher crude oil import bill is expected to dent the macroeconomic parameters.
The country's import dependence has increased owing to a steady decline in domestic output. The nation 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 per cent in the following year before climbing to 85.5 per cent in 2021-22.
FAQs
India's crude oil import bill nearly doubled in the 2021-2022 fiscal year, which ended on 31 March, as the Ukraine war pushed international oil prices to record levels. The country spent $119.2 billion in that financial year, data released by India's Petroleum Planning & Analysis Cell (PPAC) claimed.
Is India's oil import bill doubles to $119 BN in fy22? ›
India, the world's third biggest oil consuming and importing nation, 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).
How much is India's oil import bill? ›
In value terms, crude oil imports for the fiscal were at $158.3 billion, up from $120.7 billion in 2021-22, as per PPAC data.
What is the import bill for oil in India 2023? ›
Crude oil imports increased by 6.2 per cent and decreased by 0.6 per cent during August 2023 and April-August 2023 respectively, compared to the corresponding period of the previous year. The net import bill for oil and gas was $9.3 billion in August 2023 compared to $11.8 billion in August 2022, according to PPAC.
What is the oil import bill in India in FY23? ›
The oil import bill ballooned 450% from $26 billion in FY05 to $143 billion in FY14, while it went up just 10% to $158 billion between FY14 to FY23. However, India's import dependence for oil still rose from 76% in FY05 to 77.6% in FY14 and, further to 87.3% in FY23.
What is the total import of India in FY22? ›
According to the Commerce Ministry, in FY22, the annual overall exports trade had stood at $676.53 billion. While, the overall imports trade for FY 2022-23 too surged to $892.18 billion, compared to $760.06 billion in FY 2021-22.
How much oil does India import in USD? ›
It said that the estimated value of petroleum imports is USD 210 billion and this includes crude oil, LNG and LPG. "Crude imports grew by 53 per cent over the last fiscal. India bought crude from diversified countries.
Is the US importing oil from India? ›
The United States imported roughly 152 million barrels of refined petroleum products in the first five months of this year, with about 8 percent coming from India.
Does India pay for oil in dollars? ›
Foreign settlement
The U.S. dollar has long been the main global oil currency, including for purchases by India. Reuters also reported that China has shifted to the yuan for most of its energy imports from Russia, which overtook Saudi Arabia to become China's top crude supplier in the first quarter this year.
Which country is the largest importer of oil to India? ›
The previous record for most crude oil imports from Russia was in June 2022 when India bought 942,694 bpd, according to Vortexa. Russia, which in October 2022 for the first time surpassed traditional sellers Iraq and Saudi Arabia to take the No. 1 spot, now makes up for 25 per cent of all oil imported by India.
Russia now the biggest Oil Supplier to India: Key Points
During the period from April to February, India's imports of Russian oil surged to $27 billion, placing Russia as the second-largest crude oil exporter to India in FY23, following imports from Iraq which totaled $30 billion.
Who is the largest exporter of crude oil to India 2023? ›
During May 2023, Russia remained India's top crude oil supplier for the sixth consecutive month, compared with Iraq at 839,000 barrels per day (b/d), Saudi Arabia (560,000 b/d), the UAE (203,000 b/d), Kuwait (168,000 b/d), Oman (22,000 b/d) and Qatar (14,000 b/d).
Does India import 82% of its oil needs? ›
India has an 82.8% import dependence for crude oil and 45.3% for natural gas.
How much oil India imports from Russia 2023? ›
India had imported 2.1 mbd from Russia in July 2023, but in August, it fell to the lowest amount in seven months, to 1.63 mbd. “India's crude imports in July reached a three-month high of 4.58 mbd. Strong domestic and exported crude oil demand had buoyed refiners to operate at high utilisation that month.
Who is the biggest importer of India? ›
The largest share of India's imports came from China, accounting for over 15 percent in fiscal year 2022.
What is the new oil tax in India? ›
According to a notification issued by the Ministry, Special Additional Tax Duty (SAED), better known as windfall gain tax, on domestically produced crude petroleum will increase to Rs 7100 a tonne from Rs. 4250/tonne.
What is the forecast for India imports? ›
In the long-term, the India Imports is projected to trend around 60.00 USD Billion in 2024 and 68.00 USD Billion in 2025, according to our econometric models.
Has India increase in oil imports? ›
Crude oil production has fallen 3% on year during the quarter while the consumption of petroleum products has increased 5%. This has increased India's dependence on imports to 88.3% of total consumption from 86.5%. Natural gas production in the country barely changed during the quarter from a year earlier.
Is India's fuel imports on the rise? ›
India's reliance on imported crude inched up to 88.3 per cent in April-June from 86.5 per cent a year ago as consumption of fuels and other petroleum products rose while domestic oil production declined slightly, as per data released by the Petroleum Planning & Analysis Cell (PPAC) of the oil ministry.
