India’s fiscal year 2023-24 witnessed a notable downturn in the nation’s crude oil import bill, marked by a significant 16% reduction to $132 billion, as per data released by the oil ministry.
Despite consistent import volumes, the decline in crude import expenditure was attributed to lower oil prices prevailing throughout the fiscal year. India imported 232 million metric tonnes (MMT) of crude oil during the fiscal year, while domestic crude oil production remained relatively stable at 29 MMT, mirroring figures from the previous year. The global crude benchmark, Brent, recorded an average price of $82 per barrel during FY24, notably lower than the $96 per barrel recorded in the preceding fiscal year. This downward trend in prices translated into a 13% decrease in imports of refined petroleum products, amounting to $23 billion, alongside a 17% decline in exports to $47 billion. Despite a 17% increase in volumes to 31 billion cubic metres, imports of LNG (liquefied natural gas) registered a notable 22% decrease to $13 billion during the fiscal year.
India’s dependence on imported oil for its consumption saw a marginal uptick to 87.7% in FY24, up from 87.4% in the previous year. Similarly, gas import dependence also experienced a slight increase to 46.4% from 43.9%. Reflecting on natural gas consumption, domestic figures rose by 11% to 66.6 billion cubic metres (BCM) in FY24, aided by lower global prices facilitating imports and overall consumption. Concurrently, local gas production witnessed a modest 6% increase to 36.5 BCM. Furthermore, refiners in India boosted petroleum product output by 3.6% during FY24, with total consumption of petroleum products escalating by 4.6% to 233 MMT, underlining the sector’s resilience amidst fluctuating global market dynamics.
