Crude oil imports dip 16% but reliance on overseas suppliers hit new high

India’s crude oil imports: India's crude oil imports witnessed a notable decline of 16 per cent during the fiscal year ending March 31, attributed to lower international prices. However, despite this decrease, the nation's reliance on overseas suppliers reached a new peak, as per official data.

In the fiscal year 2023-24 (April 2023 to March 2024), India imported 232.5 million tonnes of crude oil, used for refining into essential fuels such as petrol and diesel. This import volume remained nearly consistent compared to the previous financial year. Yet, the expenditure on imports reduced to $132.4 billion in FY24, down from $157.5 billion in 2022-23, according to data from the oil ministry's Petroleum Planning and Analysis Cell (PPAC).

India, ranking as the world's third-largest oil importer and consumer, continued to grapple with a growing dependence on imported crude oil, which surged to 87.7 per cent in 2023-24, up from 87.4 per cent. Concurrently, domestic crude oil production remained relatively stagnant at 29.4 million tonnes during the same period.

In addition to crude oil, India also allocated $23.4 billion for the import of 48.1 million tonnes of petroleum products such as LPG. Moreover, the country exported 62.2 million tonnes of petroleum products, generating revenue of $47.4 billion.

Apart from oil, India imports liquefied natural gas (LNG). In the fiscal year ending March 31, 2024, the import of 30.91 billion cubic meters of gas amounted to $13.3 billion, compared to $17.1 billion spent on 26.3 bcm of gas imports in 2022-23.

The net oil and gas import bill (including crude oil, petroleum products, and LNG) totalled $121.6 billion in 2023-24, down from $144.2 billion in the previous fiscal year.

Petroleum imports accounted for 25.1 per cent of India's gross imports by value, down from 28.2 per cent in 2022-23, while petroleum exports represented 12 per cent of the country's gross exports in 2023-24, compared to 14 per cent in the preceding year.

India's fuel consumption reached a record high of 233.3 million tonnes in the fiscal year ended March 31, 2023, marking a 4.6 per cent increase from the previous year. This surge in consumption underscores the nation's ongoing challenges in meeting its energy needs amidst limited domestic production, despite its surplus refining capacity allowing for petroleum product exports.

Against the backdrop of these figures, India's energy landscape continues to evolve, shaped by both domestic and global factors. 

(With PTI inputs)