Import bill faces brunt of rising crude prices
India, the world’s third largest crude oil importer’s cost for oil in January has gone up by almost 46 per cent from US$ 6.6 billion to US$ 9.6 billion. This significant jump in cost of import of oil was led by two factors viz sharp rise in crude oil prices and increase in volumes.
The crude oil prices from January 2017 to January 2018 have risen almost 26 per cent as depicted in below graphs. Also, volume of crude oil surge almost 15 per cent. However, rupee appreciation during the period has acted as cushion for import bill.
The India is majorly dependent on imports for meeting crude oil need (around 80 per cent of India’s crude oil needs are fulfil through Import).
Further, India aims to boost its refining capacity by almost 77 per cent to 8.8 million barrel per day by CY 2030. Country’s fuel demand in the first month of 2018 surge 10.3 per cent in the wake of growth in consumption of diesel and gasoline.