New Delhi: India has made significant adjustments in its crude oil import strategy in response to volatile global oil markets, as indicated by the latest data released by the Petroleum Planning and Analysis Cell (PPAC). In June 2024, the country reduced its crude oil imports by 5.1 per cent while increasing domestic crude oil processing by 3.1 per cent compared to the same period last year.
According to the PPAC report, India’s total processed crude oil reached 22.2 million metric tonnes (MMT) in June 2024, up from 21.5 MMT in June 2023, reflecting a notable rise in refining activity. This increase was primarily driven by public sector and joint venture refiners, who processed a combined 15.1 MMT, while private refiners processed 7.1 MMT. Of this total, 20.1 MMT was imported crude, while 2.1 MMT was sourced domestically.
The reduction in crude oil imports has correspondingly decreased the import bill for oil and gas, which totaled $10.2 billion for the month, with crude oil imports alone accounting for $9.2 billion. This adjustment comes against the backdrop of Brent crude averaging $82.61 per barrel in June 2024, up from $74.70 per barrel the previous year. Similarly, the Indian basket crude price averaged $82.55 per barrel during the same period, closely aligning with global pricing trends.
Meanwhile, the production of petroleum products saw a slight decrease to 22.7 MMT in June 2024 from 22.4 MMT in the previous year. However, there was a 1.5 per cent growth in production from fractionators, indicating improved efficiencies in specific segments of the refining process.
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