India's Annual Crude Oil Imports Double in Past Decade to 172 Million Tons

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Written by Richard Finlayson, senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Although a strong increase in domestic demand for oil has driven the increase in India's imports of the product, the country's aim to be a major regional refiner and fuel exporter could see the imports increase even more steeply in the future. Major refiners are banking on the prospect of adding value to the imported supplies and exporting refined fuel products.

In 2011-12, India imported 172.11 million tons of crude oil (equivalent to about 1.3 billion barrels) for domestic consumption. This was a 5% increase on the 163.59 million tons imported in the previous fiscal year, the minister of state petroleum, RPN Singh, reported. The surplus to domestic consumption was 32.69 million tons (about 245 million barrels).

Overall imports showed a 10% increase in 2002-03, with crude oil at 204.8 million tons against 196.5 million tons the previous year. The annual percentage increases showed a 10% increase in 2002-03 to 81.99 million tons. In 2008-09, they increased 20% to 159.26 million tons, while imports increased 12% to 111.5 million tons.

The minister said that Qatar has been India's largest supplier of crude oil and liquefied natural gas (LNG). In April, a memorandum of understanding was signed between the two countries for increased cooperation in the petroleum and allied services sectors.

The import of oil and gas from Qatar will depend on domestic demand in India, as well as the price at which LNG is sold by Qatar, the minster said.

Indian refiners also must keep an eye on the potential glut in global refining capacity and balance it with the dramatic growth in auto ownership in Asian countries.

For related information, see February 24, 2012, article - Indian refiners Exceed Planned Production in January.

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