Oil import invoice doubles to $119 bn in FY22 as vitality costs surge

Crude oil import invoice almost doubled to $119 billion within the fiscal 12 months that ended on March 31, as vitality costs soared globally following the return of demand and struggle in Ukraine.

India, the world’s third greatest oil consuming and importing nation, spent $119.2 billion in 2021-22 (April 2021 to March 2022), up from $62.2 billion within the earlier fiscal 12 months, in line with information from the oil ministry’s Petroleum Planning & Analysis Cell (PPAC).

It spent $13.7 billion in March alone, when oil costs surged to 14-year excessive. This in contrast with $8.4 billion spending in the identical month final 12 months.

Oil costs began to surge from January and charges crossed $100 per barrel within the following month earlier than touching $140 per barrel in early March. Prices have since receded and at the moment are round $106 per barrel. According to PPAC, India imported 212.2 million tonnes of crude oil in 2021-22, up from 196.5 million tonnes within the earlier 12 months. This was, nonetheless, decrease than pre-pandemic imports of 227 million tonnes in 2019-20. The spending on oil imports in 2019-20 was $101.4 billion.

The imported crude oil is changed into value-added merchandise like petrol and diesel at oil refineries, earlier than being bought to vehicles and different customers.

India, which is 85.5 per cent depending on imports to satisfy crude oil wants, has a surplus refining capability and it exports some petroleum merchandise however is brief on manufacturing of cooking fuel LPG, which is imported from nations like Saudi Arabia.

The nation consumed 202.7 million tonnes of petroleum merchandise in 2021-22, up from 194.3 million tonnes within the earlier fiscal, however decrease than pre-pandemic 214.1 million tonnes demand in 2019-20. Import of petroleum merchandise in 2021-22 fiscal was 40.2 million tonnes value $24.2 billion. On the opposite hand, 61.8 million tonnes of petroleum merchandise had been additionally exported for $42.3 billion. with pti