In a strategic response to global oil market fluctuations, India has reduced its crude oil imports by 5.1% and increased domestic crude oil processing by 3.1% in June 2024 compared to June 2023, as reported by the Petroleum Planning and Analysis Cell (PPAC).
The latest PPAC data reveals a significant rise in the country’s refining activity, with total processed crude oil reaching 22.2 million metric tons (MMT) in June 2024, up from 21.5 MMT in the same month last year.
The increase was mainly driven by public sector and joint venture refiners, who processed 15.1 MMT, while private refiners handled 7.1 MMT. Out of the total processed crude, 20.1 MMT was imported, and 2.1 MMT was domestically sourced.
The reduction in crude oil imports has led to a decrease in the import bill for oil and gas, totalling $10.2 billion for the month, with crude oil imports alone accounting for $9.2 billion.
The shift comes amidst an increase in the price of Brent crude, which averaged $82.61 per barrel in June 2024, up from $74.70 per barrel the previous year. The Indian basket crude price averaged $82.55 per barrel during the same period, closely reflecting global pricing trends.
As reported by ETEnergyworld.com, these changes highlight India’s proactive approach to aligning its oil sector operations with global market conditions, aiming to enhance refining capacities and manage the economic impact of fluctuating crude oil prices.
