E-Paper
Oil import bill jumps 15% in 2003-04: Survey
Increase in volume coupled with firm international oil prices led to a 15% jump in India's oil import bill in '03-04, the annual Economic Survey said.
Increase in volume coupled with firm international oil prices led to a 15 per cent jump in India's oil import bill in 2003-04, the pre-Budget Economic Survey said on Wednesday.
"The spurt in oil imports by 26 per cent in 2002-03 was contributed more by increase in international crude oil prices (around 20 per cent) than by enhanced volume of imports (3.2 per cent)."
"By contrast, in 2003-04, the volume impact (11.3 per cent) dominated with average already-high international crude oil prices rising further on an annual average basis by 5.4 per cent," the survey tabled in Parliament said.
Crude oil and petroleum product import bill grew to Rs 93,159 crore ($20.3 billion) in 2003-04 over Rs 85,042 crore ($17.6 billion) in previous year as refiners resorted to heavy exports of refined petroleum products.
India exported 14 million tonnes of petroleum products for Rs 16,101 crore ($3.5 billion) in 2003-04 as compared to 10.28 million tonnes exported the previous year for Rs 10,868 crore ($2.3 billion).
The net oil import bill (import minus exports) was Rs 77,058 crore in 2003-04 as against Rs 74,174 crore of in 2002-03.
The Survey said in absolute terms, the average global crude oil prices increased from $23 per barrel in 2001-02 to $27.6 per barrel in 2002-03 and further to $29 per barrel in 2003-04.
Rising demand, lower than normal fuel inventories and rising concerns about the security of Middle East supplies contributed to this hike in prices.
"Increasing dependence on crude oil imports, in the face of rising domestic refining capacity, and a stagnant domestic crude production, imparted a downside risk to the country's oil economy from volatility of such external shocks," the Survey said.
Currently, almost two thirds of country's crude oil requirements are imported, with petroleum, oil and lubricants (POL) imports constituting around 27 per cent of India's total imports.
Hence, an important feature of sourcing of POL imports in the recent past has been the diversification of India's POL imports away from the geo-politically sensitive regions like Middle East.
Another development has been the decision to build up strategic oil reserves, equivalent of about 15 days requirement, to minimize external shocks due to crude oil price volatility in the short term, it added.
