Ukraine crisis: Government closely monitors energy markets, assures stable fuel price

In a statement, the Ministry of Petroleum and Natural Gas said, “In order to ensure energy justice for its citizens and a fair energy transition towards a net zero future, India stands ready to take appropriate action to ensure supply at stable prices. ”

The ministry further said, “India is also committed to supporting the initiative for release from strategic petroleum reserves, mitigating market volatility and easing the rise in crude oil prices.” The government’s statement comes after crude oil prices rose above $100 a barrel this week for the first time in more than seven years after Russian President Vladimir Putin ordered a military operation in Ukraine.

India’s crude oil import bill for the current fiscal ending March 31 is projected to exceed USD 100 billion, almost double last year’s expenditure, as international oil prices trade at a seven-year high. does. India spent USD 94.3 billion in the first 10 months (April-January) of the current fiscal beginning April 1, 2021, according to data from the Petroleum Planning and Analysis Cell (PPAC) of the Oil Ministry.

It spent USD 11.6 billion in January alone when oil prices started rising. This is compared to an expenditure of US$ 7.7 billion in the same month last year. In February, oil prices crossed US$100 a barrel and going at this rate, India, which imports 85 per cent of its crude oil needs, almost doubled its import bill by the end of the fiscal year. It is expected to reach USD 110-115 billion. 2021-2022.

Imported crude oil is converted into value-added products such as petrol and diesel at oil refineries before being sold to automobiles and other users. India has surplus refining capacity and exports some petroleum products but falls short on production of LPG, which is imported from countries like Saudi Arabia.

(with inputs from agencies)