India- One of the Largest Oil Importers
2 min read
India is one of the largest oil importers in the world. It meets about 80% of its edible oil demand through imports & the share of sunflower oil in the total edible oil imports has been rising steadily during past few years.
India was the 3rd top net crude oil importer of 205.3 Mt in 2018. India imports nearly 83% of the oil it consumes, making it one of the biggest importers of oil in the world.
Most of its crude oil & cooking gas comes from Iraq & Saudi Arabia.
India is the largest importer of sunflower oil too, importing about 2.5M tones per annum mainly from Ukraine, to bridge the gap between demand & supply. Given the lack of crude oil #demand by Indian refiners, it is estimated that daily imports of crude oil will fall to 4.14M barrels in FY21 from 4.5M barrels per day in FY20. A dollar increase or decrease in prices of crude #oil would affect the import bill by nearly USD 1.5B per annum. On the back of an economic #slowdown, India’s crude oil import bill had come down by 8.7% during the last fiscal to USD 102.2B. The Gov claimed that it has saved ₹5,000 Cr in foreign exchange while strengthening its energy security by filling the reserves with cheap oil prices. Apart from the gov, common people are also expected to gain from decreased oil imports as inflation goes down with a fall in oil imports.
Going forward, do you think there will be a further slip in the oil price & it’ll be a good news for India’s economy?
By: Radhika
