The cost of crude imports drops by 16% in FY24

India’s import cost for crude oil decreased significantly, by about 16%, in the fiscal year 2023–24, despite the fact that the country’s imports were practically unchanged from the year before.

Compared to the same time last year, crude oil imports decreased by 4.4% in March 2024 and by 0.1% throughout the course of the fiscal year (April–March 2023–24). In contrast, the import bill decreased more significantly in FY24 to ~13,250 crore from ~15,750 crore in FY23.

The petroleum ministry’s Petroleum Planning and Analysis Cell (PPAC) reports that imports of liquefied natural gas (LNG) decreased somewhat in March 2024 as compared to the previous fiscal year. However, LNG imports have increased by 17.5% throughout the course of the current fiscal year.

Petroleum product (POL) exports also had a fluctuating pattern. In March 2024, they were 11.7% lower than in the same month the previous fiscal year, but overall, they were 1.9% higher. Fuel oil, vacuum gas oil, and aircraft turbine fuel exports have increased, which is the cause of this expansion.

The data indicates that there has been a good rise in the domestic production of petroleum products. Production increased by 1.5% in March 2024 compared to March 2023, and by 3.6% over the course of the fiscal year.

A summary of the main petroleum products generated nationally in March 2024 is also included in the study. The majority (40.5%) is made up of high-speed diesel (HSD), with motor spirit (MS) coming in second at 16.6%. Pet coke, aircraft turbine fuel (ATF), naphtha, and liquefied petroleum gas (LPG) are some of the other noteworthy products.