INSUBCONTINENT EXCLUSIVE:
For 2018-19, the imports are pegged at almost 227 MT.India's crude oil import bill is likely to jump by about USD 26 billion in 2018-19 as
rupee dropping to a record low has made buying of oil from overseas costlier, government officials said today
Besides, the rupee hitting a record low of 70.32 to a US dollar in the opening deal today will also lead to a hike in the retail selling
price of petrol, diesel and cooking gas (LPG).India, which imports over 80 per cent of its oil needs, spent USD 87.7 billion (Rs 5.65 lakh
crore) on importing 220.43 million tonne (MT) of crude oil in 2017-18
For 2018-19, the imports are pegged at almost 227 MT."We at the beginning of the financial year estimated that crude oil import bill will be
around USD 108 billion (Rs 7.02 lakh crore) at an average crude oil price of USD 65 per barrel and exchange rate of Rs 65 per dollar," an
official said.But the exchange rate has been at an average of Rs 67.6 till August 14
If the rupee is to stay around 70 per dollar for the rest of the ongoing fiscal, the oil import bill will be USD 114 billion, he said
The rupee has been among the worst performing currencies in Asia, witnessing 8.6 per cent slump this year.Fanned by a higher oil import
bill, India's trade deficit, or the gap between exports and imports, in July widened to USD 18 billion, the most in more than five
years.Trade shortfall puts pressure on the current account deficit (CAD), a key vulnerability for the economy.Rupee depreciation will result
in higher earnings for exporters as well as domestic oil producers like Oil and Natural Gas Corp (ONGC) who bill refiners in US dollar
terms.But this would result in rise in petrol and diesel prices, with full impact likely to be visible later this month."Though oil firms
fix retail selling price of petrol and diesel on a daily basis, the inputs for that fixation are an average of previous fortnight
So today's rate is based on average benchmark of international oil prices and the exchange rate of August 1-15."And since the rupee in the
beginning of the month was at 68.3 to 68.6 a dollar, the exact impact of today's depreciation is not visible," he said.Prices of petrol
and diesel were today hiked by 6 paise a litre each to Rs 77.20 and Rs 68.78, respectively in Delhi
Rates are highest in two months
Fuel prices in Delhi are the cheapest in all metros and most state capitals due to lower sales tax or VAT.If oil prices continue at these
levels and rupee at 70 a dollar, retail rates should go up by 50-60 paisa a litre
Petrol price had touched an all-time high of Rs 78.43 a litre on May 29 and had since receded
On that day, the diesel price had touched an all-time high of Rs 69.30.State-owned oil firms had in mid-June last year dumped 15-year
been edited by TheIndianSubcontinent staff and is published from a syndicated feed.)
