India's Import Bill For Crude Oil Is Expected To Top $100 Billion

As global crude prices hit seven-year highs, the country's crude oil import bill is expected to surpass $100 billion in the current fiscal year, nearly double that of the previous year.

According to figures from the oil ministry's Petroleum Planning & Analysis Cell (PPAC), India spent $94.3 billion in the first ten months (April-January) of the current fiscal year, which began on April 1, 2021.

When oil prices began to rise in January 2022, it spent $11.6 billion. In January 2021, the government spent $7.7 billion on oil imports, in contrast. Oil prices surpassed USD 100 per barrel this month, February, and at this rate, India, which imports 85 percent of its crude oil, will virtually treble its import bill to USD 110-115 billion by the end of the fiscal year 2021-2022.

India, the world's third-largest energy importer, and the consumer has spent $101.4 billion on the import of 227 million barrels of crude oil prior to the epidemic in FY20. With a greater crude oil import cost, the country's petrol and diesel prices are projected to rise once again.

Multiple reasons have contributed to the increase in crude oil imports. While global crude oil prices have been quickly rising as a result of the Russia-Ukraine war, India's increasing need for fuel as a result of its progressively improving economy is resulting in more fuel imports and, as a result, greater import expenses.