India’s Crude Oil import bill jumped over 20 per cent to $56.25 billion in the first seven months (April-October 2017) of the current financial year and is likely to rise up to $90 billion by March 2018 - a 29 per cent increase over last fiscal, ratings agency ICRA said in its latest report.
The swelling oil bill could further impact the already widening trade deficit and push up inflation.
India’s trade deficit widened to its highest in nearly three years in October, government data showed. Higher crude price, coupled with a more than a quarter jump in volumes from a year ago pushed petroleum import bill to $9.2 billion in October.
Any further increase in oil bill will add pressure on the country’s trade deficit which widened to $14 billion for the month of October, an increase of 26 per cent as compared to the corresponding month a year ago, primarily on the back of a 28 per cent increase in oil import bill.
Crude oil and products were responsible for 25 per cent of the country’s total import bill of $37 billion in the month of October.
Source: Commodity OnlinePrevious Next