BANKING AND ECONOMY
During the fiscal year 2021-22, India's crude oil import doubled to USD 119 billion, up from USD 62.2 billion in the previous fiscal year 2020-21. The data was released by the Petroleum Planning & Analysis Cell (PPAC), Ministry of Petroleum and Natural Gas (MoPNG).
The crude oil price was raised as energy prices soared from January globally (over USD 100 per barrel) following the return of demand and war in Ukraine.
In March 2022, India spent USD 13.7 billion as the oil prices surged to a 14-year high. This compared with USD 8.4 billion spending in the same month last year. This month, the price raised to USD 140 per barrel.
India imported 212.2 million tonnes of crude oil in 2021-22, up from 196.5 million tonnes in the previous year 2020-21, but lower than pre-pandemic imports of 227 million tonnes in 2019-20. With this, India is the world's third-biggest oil-consuming and importing nation. The country has a surplus refining capacity and it exports some petroleum products.
The imported 85% of total crude oil needs and is turned into value-added products like petrol and diesel at oil refineries, before being sold to automobiles and other users.
The country is short on the production of cooking gas LPG, which is imported from nations like Saudi Arabia. India also spent USD 11.9 billion on the import of 32 billion cubic meters of LNG in 2021-22 which is compared to USD 7.9 billion spent on the import of 33 bcm of gas in the previous fiscal 2020-21.
The country's import dependence has increased as there is a decline in the domestic output. It produces 32.2 million tonnes, 30.5 million tonnes, 29.7 million tonnes of crude oil in the year 2019-20, 2020-21 and 2021-22 respectively.