India reliance on imported crude oil at record high of 87.3% in FY23

Image Credit: The Indian Express

India’s reliance on imported crude oil has hit a record high of 87.3% in the financial year 2022-2023, according to recent data. This marks a significant increase from the previous year’s 83.4%. The surge in imports is attributed to a combination of factors, including a rise in demand due to economic recovery, a decline in domestic production, and disruptions in supply chains caused by the COVID-19 pandemic.

India, which is the world’s third-largest oil importer, has been striving to reduce its dependence on imported oil by promoting alternative energy sources such as solar and wind power. However, the latest data suggests that the country still has a long way to go to achieve its energy independence goals.

The high reliance on imported oil is a cause for concern for the Indian government as it puts pressure on the country’s trade balance and exposes it to geopolitical risks. The Indian rupee’s depreciation against the US dollar has further added to the country’s woes as it has resulted in higher import bills.

To mitigate the impact of rising crude oil prices, the Indian government has cut taxes on petrol and diesel, which are among the most heavily consumed fuels in the country. However, this move has put pressure on the government’s finances, which are already under strain due to the economic impact of the pandemic.

Rereported from the story originally published in The Indian Express of Form