India’s net oil and gas import bill balloons to $12 billion in Apr as imports soar

The Indian basket crude price averaged at $89.46 per barrel during April.

India's net oil and gas net import bill increased to $12.3 billion in April, compared to $10.1 billion in the same month last year, according to data by the oil ministry.

According to the monthly report by Petroleum Planning & Analysis Cell (PPAC), India's oil imports jumped by seven percent in the month from last year while the average Indian basket crude price also rose in April.

The Indian basket crude price averaged at $89.46 per barrel during April, as against $83.76 per barrel last year and $84.49 per barrel during March. Meanwhile, out of the net $12.3-billion import bill, crude oil imports accounted for $13 billion and LNG (liquefied natural gas) imports made up for $1.1 billion, while petroleum exports were $3.7 billion during April.

In April, Russia was the top supplier of crude oil to India, according to energy cargo tracker Vortexa. Moscow supplied 1.7 million barrels of crude oil to India in April, as against 1.5 million bpd in March, with the sour grade Urals constituting the major share. Meanwhile, India’s import of crude oil from other countries including Iraq, Saudi Arabia, UAE and the US fell in the month.

India, one of the largest energy consumers in the world, is dependent on imports for over 85 percent of its crude oil requirements and around 50 percent of its natural gas needs. With the rising energy demand in the country and steady domestic production, India’s oil and gas imports seem to be increasing in the coming years. In April, India’s import dependency for crude oil was at 88.4 percent.

India imported 2,608 million metric standard cubic metre (MMSCM) of LNG in April, which was 3.7 percent higher than the corresponding month of the previous year.

Fuel demand

The consumption of petroleum products, a reflection of fuel demand in the country, increased by 6.1 percent year-on-year in April to 18.7 MMT. The growth was led by 14.1 percent growth in petrol demand, while aviation turbine fuel (ATF) and liquefied petroleum gas (LPG) consumption rose by 13.1 percent and 3.9 percent, respectively. Diesel demand increased 1.3 percent in the month.

The increase in April’s fuel demand comes amid onset of summer season and campaigning for the ongoing general elections. Meanwhile, total natural gas consumption in the country increased 6.4 percent in April from last year to 5,515 MMSCM.

On the domestic production front, crude oil and condensate production registered a growth of 1.6 percent in April from last year to 2.4 MMT. State-run ONGC production was 1.6 MMT in the month while Oil India Limited (OIL) production was 0.3 MMT. Total domestic production of natural gas also increased by 7.8 percent to 2,958 MMSCM in April.