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India’s crude imports at record high in 2022-23
India’s crude imports rose during the April 2022-March 2023 fiscal year to a record high because of increased fuel demand and lower domestic crude production.
Imports rose to 232.56mn t (4.67mn b/d) during 2022-23, up by 9.5pc from a year earlier, according to preliminary oil ministry data. This is the highest level since the ministry began publishing data in 1998-99. Imports were last highest at 4.55mn b/d during 2018-19.
Imports rose in 2022-23 as fuel demand hit an all-time high of 222.3mn t, up by 8.8pc from 204.23mn t during 2021-22, while domestic crude production fell to 586,000 b/d from 596,000 b/d over the same period.
Imports also rose because of record purchases from Russia, which increased to 1.14mn b/d against 92,000 b/d a year earlier. Receipts rose for the fifth straight month in March and above 1mn b/d for the tenth consecutive month, Vortexa data show. India stepped up its purchases of discounted Russian oil, taking advantage of the embargo imposed by many developed countries like the US and regions like the EU on Russian exports following the conflict in Ukraine from February 2022.
India’s total crude imports rose to 4.9mn b/d in March, up by 8.9pc from a year earlier but fell by 2.9pc from February.
India’s crude import dependency rose to 87.3pc in 2022-23 from 85.5pc a year earlier and 84.4pc during 2020-21, according to oil ministry data. Import dependency was at 88.6pc in March compared with 87.7pc a year earlier. India is seeking to reduce import dependency by boosting domestic crude output to meet demand, according to oil minister Hardeep Singh Puri in November 2022. The government is focusing on increasing oil exploration, with development of sedimentary basins rising from 6-7pc in 2021 to 15pc, Puri had said.
Indian crude demand was at 5.14mn b/d in 2022 and will rise to 5.39mn b/d this year, according to Opec’s Monthly Oil Market Report for April.
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