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India oil imports by country 2021
Before we learn about India’s oil imports by country in 2021, some facts about India’s oil profile
- India will spend more than $100 billion on crude oil imports in this fiscal year 2021 (India’s financial year begins in April and ends in March.), almost double what it spent last year.
- India is a key refining hub in Asia, with an installed capacity of over 249.36 million tonnes per annum.
- India has 23 refineries and plans to grow its refining capacity to 400 mtpa by 2025.
- India shipped in 3.92 million BPD (barrels per day) of oil in February 2021.
- India is the world’s third-biggest oil importer and consumer.
- India ships about 84% of its crude needs and relies heavily on the Middle East.
India imports oil from which country?
India crude oil imports — data for February 2021
Import Data From The Top 5 Nations
1. Iraq—867,500 BPD (barrels per day)
2. United States—-545,300 BPD—14% of India’s overall imports in FEB 2021
3. Nigeria —-472,300 BPD
4. Saudi Arabia—-445,200 BPD—Saudi Arabia, which has consistently been one of India’s top two suppliers, slipped to No. 4 for the first time since at least January 2006.
For the past several years, Iraq has consistently been one of the top crude oil suppliers to India. After becoming India’s largest crude oil supplier in FY 2017–18, Iraq has maintained that position by supplying 51.56 MMT of crude oil in FY 2019–20 and 43.02 MMT in FY 2020–21, accounting for 21.64 percent of India’s total oil imports.
During the period April–November 2021, Iraq supplied 35.71 MMT of crude oil to India. The major importers of oil from Iraq are India’s public sector oil companies, including IOCL, HPCL, and BPCL. Indian oil companies are heavily involved in the Iraqi oil sector.
Why does India import oil?
India is the world’s third-largest consumer of oil, after the United States and China. India imports nearly 84% of its crude oil to meet its energy needs. The country has few oil reserves, and production is limited, which is why it has to import most of its oil. India is looking to reduce its dependence on oil imports, but this will be a challenge because demand for oil is expected to grow in the coming years.
Oil import bill of India
India will spend more than $100 billion on crude oil imports in this fiscal year 2021 (India’s financial year begins in April and ends in March.), almost double what it spent last year. Oil prices worldwide are at seven-year highs due to the ongoing Russia-Ukraine war. This is according to India’s oil ministry’s Petroleum Planning & Analysis Cell data. India spent $94.3 billion in the first ten months of the fiscal year that began on April 1, 2021, which is now in progress (PPAC).
The crude oil that is brought in from other countries is turned into more valuable products like petrol and diesel at oil refineries. These products are then sold to automotive vehicles and used in other ways. India has plenty of capacity to refine and export petroleum products, but it doesn’t have enough role in making cooking gas, LPG, bought from countries like Saudi Arabia.
As a result of COVID-19, India spent $62.2 billion on importing 196.5 million tonnes of crude oil during the 2020–21 fiscal year. It has already bought 175.9 million tonnes of crude oil this year.
In the pre-pandemic 2019–20 period, the world’s third-largest energy importer and consumer spent $101.4 billion on 227 million tonnes of crude oil from outside sources.
Most Preferred Region for Oil Imports in India
- The Middle East’s share of the import basket of oil is 52.7%.
- Africa’s —15%
- United States–14%
In recent times, the policy for oil import in India.
- In recent years, Indian refiners have made significant investments in modernising plants that can efficiently process low-grade crudes into diesel and gasoline, thereby increasing operating margins and providing refiners with greater purchasing flexibility. This has enabled refiners in the world’s third-largest oil consumer to price shop during periods of scarcity and maintain profitability in a rapidly growing, cost-sensitive market.
- For many years, India has been one of the world’s biggest importers of crude oil. The country’s demand for oil is projected to grow in the coming years as its economy continues to expand. In order to meet this demand, India has been increasing its oil imports in recent times.
- The main suppliers of oil to India are Middle East countries. Their share of the import basket of oil is 52.7%. Then it’s Africa’s —15% and then the United States’—14%. (2021 Data)
- The Indian government has been working to increase the country’s oil production capacity in order to reduce its dependence on imported oil. However, this is a long-term goal and India is expected to continue importing large amounts of oil in the coming years.
- India is working on diversifying the country’s energy basket with crude oil supplies from non-organisation of the Petroleum Exporting Countries (Opec) nations.
- In February 2021, inflows from the US were 2.11 million mt, about 32% higher than the 1.61 million mt inflows from Saudi Arabia. This pushed the US to the second spot in India’s top oil importer sources.
- Iraq is retaining its position as the top supplier, with shipments of 2.89 million mt in February 2021.
- India is looking to its old energy partner, Russia, to save its citizens from price shocks,
- India signed a contract for crude oil sourcing from Russia in February 2020, with state-run Indian Oil Corporation (IOC) and Rosneft signing an agreement for 2 million metric tonnes (MMT) of Urals grade crude supply to India.
In conclusion, India is diversifying its energy sources by importing crude oil from non-Opec nations. This will help to reduce the country’s dependence on Opec oil. India is also working on increasing its production of renewable energy, which will help to further reduce its dependence on fossil fuels.