India’s crude oil import bill fell by 10% in FY20

NEW DELHI : As the crude oil market fell into a bear mode following the global spread of coronavirus, India’s oil import bill also fell by about 10% in FY20. According to provisional data from Petroleum Planning and Analysis Cell (PPAC) of the petroleum ministry, India’s oil import bill went down to $101.4 billion in FY20 as against $111.9 billion in previous fiscal FY19.

Crude oil prices have fallen to about $30 a barrel now as against a high of over $70 a barrel in September and again in January this year. A one dollar fall in crude oil price results in reducing country’s import bill by almost ₹2,900 crore while a rupee fall in value of currency against dollar results in increased spending by up to ₹2,700 crore.

The lower import bill last year came even as quantum of imports increased marginally to 227 million tonnes (MT) from 226.5 MT reported in the previous fiscal.