New Delhi: India’s net oil and gas import bill fell a significant 21% year-on-year during April-December of the current fiscal year, with the total dropping to a $89.9 billion, primarily due to lower energy prices.
The latest data from the Petroleum Planning and Analysis Cell (PPAC) shows that India’s crude oil imports slightly increased to 172.9 million tonnes by December, marginally up from the 172.3 million tonnes bought in the same period of financial year 2022-23 (FY23).
In FY23, global crude oil prices soar to a record $130 a barrel following the Russia-Ukraine war, which sparked widespread supply concerns. However, benchmarks Brent crude and US West Texas Intermediate slipped more than 10% in 2023 to close out the year at their lowest year-end levels since 2020.
In January so far, the Indian crude oil basket has averaged at $77.85 per barrel, compared to $83.76 in April 2023.
Interestingly, India’s dependence on imported crude oil escalated to 87.5% by December’s end, a slight increase from 87% in the same period last year.
India’s crude import volume in December stood at 19.6 million tonnes, slightly lower than the 19.8 million tonnes imported in the same month the previous year. This followed a 2% reduction in November.
There was also a 12.1% year-on-year increase in liquefied natural gas (LNG) imports in December, reaching 2,393 million metric standard cubic metres (MMSCM). The April-December period saw a total import of 22,856 MMSCM, marking a 14.2% rise from the previous year.
Despite the higher volume of LNG imports in December, the value remained steady at $1.1 billion. The total import value for April-December dropped to $9.9 billion from $13.7 billion in the same period in FY23, reflecting a decline in LNG prices due to improved supply conditions. This price drop, coupled with increased demand from the power and fertilizer sectors, has spurred the rise in imports.
A December report by S&P Global Commodity Insights predicted that if LNG prices remain low, India’s LNG imports could grow by 7%-8% in 2024, driven by higher demand in the power, industrial, and transportation sectors, and boosted by infrastructure spending ahead of the national elections.
The PPAC report also indicated a 4.9% rise in India’s petroleum product consumption during April-December 2023, reaching 172.7 million metric tonnes (MMT) compared to 164.60 MMT in the same period of the previous year.
PPAC forecasts that India’s demand for refined petroleum products in FY24 is set to grow by 5.17%, reaching a record high of 233.80 million tonnes, up from 222.30 million tonnes in the last financial year.
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Published: 17 Jan 2024, 05:57 PM IST