The average price of the Indian basket of crude oil stood at $82.11 per barrel, the highest in the last five years.
There is a reversal of the perception that the annual oil import bill will be around $110 billion in earlier years. This change is happening as expected
With the strengthening of crude oil prices and improving demand, India’s crude oil import bill is going to cross last year’s level this month. Crude oil prices are also increasing globally and demand is also increasing. Business Standard has published news in this regard, according to which the oil import bill is expected to reach a high of at least three years, as this year’s average price has crossed $ 70 a barrel in October 2021. In October 2021, the average price of the Indian basket of crude oil stood at $ 82.11 per barrel, which is the highest price in the last five years.
After the decision of the US administration, crude oil prices had come down to $ 78.89 per barrel, but reached beyond $ 82 per barrel the very next day. Under these conditions, India’s oil import bill easily doubled during the financial year 2021-22 as compared to the previous year. Iraq remained the top supplier of crude oil to India till September, according to data from the Directorate General of Commercial Intelligence and Statistics. Which is expected to continue even further.
What did the Vice President of Corporate Rating Agency Icra say?
India imported 118.5 million tonnes of crude oil from April-October 2021, valued at $61.1 billion. In comparison, India imported 104.6 million tonnes of crude oil from April-October 2020. Prashant Vashisht, vice-president of corporate rating agency ICRA, said the outlook for the annual oil import bill to be around $110 billion in its earlier years is reversing. This change is happening as expected.
Rupee weak compared to last three financial years
Indian basket of crude oil averaged $71.56 a barrel in the first seven months of FY12, compared to $37.24 a barrel in the same months of FY11. The rupee has also weakened compared to the last three financial years, with an average of Rs 74.05 against the dollar in October. Crude oil prices are expected to remain higher for the rest of FY22 as well.
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