India's Oil Imports: Volumes Down, Bill Up 18% in August!
India's Oil Imports: Volumes Down, Bill Up 18% in August!
Despite a 3% drop in crude oil imports, India's import bill soared by 18% in August. Find out how the country managed to keep its net oil and gas spend flat at $9.3 billion amidst rising global prices.
India's crude oil imports in August saw a slight decline of 3% compared to the same period last year. However, this didn't translate to savings, as the overall import bill jumped by a significant 18.2%.
This increase highlights the impact of fluctuating global oil prices on the nation's economy.
The average price for India's crude oil basket rose sharply, costing $90.19 per barrel in August. This is a considerable increase from $82.04 in July and a much lower $69.11 per barrel in August of the previous year. These figures underscore the challenges faced by importers due to global market volatilities, which were noted even before the recent escalation of tensions in West Asia.
Interestingly, despite the higher cost of crude, India's net import bill for oil and gas remained nearly unchanged at $9.3 billion. This stability was achieved through a clever balancing act: while refiners imported 19 million metric tonnes (MMT) of crude for $11.7 billion (up from $9.9 billion for 19.6 MMT last year), they also significantly boosted their earnings from petroleum product exports.
India's refiners managed to earn approximately 43% more from exports, even with a 14% reduction in the quantities supplied.
This strategic move in the export market helped offset the increased expenditure on crude imports, preventing a surge in the overall net bill.
Similarly, liquified natural gas (LNG) imports in August remained largely flat both in terms of volume (up 0.1% to 2,915 million standard cubic meters) and spending ($1.2 billion) compared to the previous year.
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