OIl Import Bill

OIl Import Bill

Subject :Economy

Section :External sector

Context:

India, the world’s third biggest oil consuming and importing nation, spent $119.2 billion in 2021-22 (April 2021 to March 2022), up from $62.2 billion in the previous fiscal year, according to data from the oil ministry’s Petroleum Planning & Analysis Cell (PPAC).

Concept:

According to PPAC, India imported 212.2 million tonnes of crude oil in 2021-22, up from 196.5 million tonnes in the previous year. This was, however, lower than pre-pandemic imports of 227 million tonnes in 2019-20. The spending on oil imports in 2019-20 was $101.4 billion.

India imports about 85.5 percent of its crude oil needs, has a surplus refining capacity and it exports some petroleum products but is short on production of cooking gas LPG, which is imported from nations like Saudi Arabia.

The imported crude oil is turned into value-added products like petrol and diesel at oil refineries, before being sold to automobiles and other users.

World’s largest:

• Russia is the world’s third-largest oil producer, trailing only Saudi Arabia and the United States.
• Russia is the world’s largest exporter of crude and oil products, having shipped 7.8 mb/d in December 2021.
• Russia is also a major exporter of natural gas and supplied almost a third, or 32%, of the gas consumed in Europe (and the U.K.) in 2021.
• China, which is the world’s largest importer of crude oil, is Russia’s single-biggest buyer.
• India imports 85% of its oil from about 40 countries, the bulk coming from the Middle East and the US. From Russia.; However, India imports 2% of its supplies, including oil which it converts to petroleum products after refining. So, it’s not Russian oil but oil in general and its rising prices that have India worried.
• Top oil import destination of India: Iraq>USA>Nigeria>Saudi Arabia>UAE