Why is it in the news ?
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According to data from Petroleum Planning and Analysis, India’s crude oil import surged 10.5% to 21 million tonnes (MT) in October 2018.
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It is a seven-year high ”” compared with 19 MT a year ago.
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Country’s crude oil import dependency pulled up to 83.5%.
More in the news
Reasons behind the surge in imports:
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India’s consumption of petroleum products registered a year-on-year growth of 4% during the month given the demand surges during the festive season.
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Also the production from domestic oilfields declined 7%.
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At the same, the country imported 20% less petroleum products during the month and exports, too, fell 4%.
Contradictory to Government's targets
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India’s increased dependence on oil imports is in contradiction with the country’s planned roadmap to increase self-sufficiency.
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In March 2015, Prime Minister had called for a time-bound reduction in India’s onerous import dependence for oil and gas.
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He set a target for the stakeholders to reduce the country’s import dependence for oil by 50% by 2030, with a commensurate increase in domestic production.
Import Bill
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The country’s overall import is estimated to be 228.6 MT in FY19, up 3.6% from 220.4 MT in FY18.
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Adding to the woe, the Indian rupee has also weakened by 8.9% against the dollar in the last one year.
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A change of $1 per barrel in crude oil price affects India’s crude oil bill by Rs 6,158 crore whereas a currency fluctuation of Re 1 per dollar affects the bill by Rs 6,639 crore.
Source
Indian Express.