India’s crude import bill estimated to fall by nearly half this fiscal

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India’s oil import bill for the current fiscal is likely to be slashed by half as a global glut push crude prices lower. A government agency said.

The Petroleum Planning and Analysis Cell (PPAC) of the oil ministry said in its latest report that India’s oil import bill was expected to around $61.7 billion in the 2015-16 fiscal against $112.7 billion in the previous year.

This is on the assumption that the Indian basket of crude prices will be $35/barrel and the rupee is at 67/dollar, PPAC said.

It estimated quantity of imports in the current fiscal to be marginally lower at 188.2 MMT.

The report said the net import bill would increase by $0.16 billion if crude price increase by a dollar in February and March this year. Similarly, it would increase by $0.08 billion is the exchange rate rises by one rupee to a dollar.

The Indian government has seen its saving from crude import rise dramatically this year, but it is yet to pass the benefits to consumers. Apart from marginal changes in pump prices, the government has been keeping most of the direct savings for itself by increasing taxes on retail fuel.

 

 

 

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