Crude import bill rises 190% to $25 billion in Q1FY22

The country’s crude oil import bill has increased 190.6% year-on-year to $24.7 billion in Q1FY22 with rising prices of the commodity in the international market and higher procurement volumes with demand for auto fuels returning. The volume of crude oil imported in the quarter, at 51 million tonne, was 14.7% higher than the same period last year. The average price of the Indian basket of crude oil in Q1FY22 was $68.6 per barrel, against the average rate of $30.4 per barrel recorded in Q1FY21.

The rise in crude prices was mainly supported by global demand recovery and voluntary production cuts until July end from major oil exporting nations. Global crude prices have started to come down after the Opec plus group, on Sunday, agreed to increase crude oil output by 0.4 million barrels per day from August to December end. Following the announcement, crude has corrected from the recent highs of $77/barrel a week back to the current level of around $68/barrel.