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India’s oil import at 83.8% in FY2018-19: Pradhan

The percentage of oil import dependency based on consumption of petroleum products during the year 2018-19 in India stood at about 83.8%, Pradhan said
New Delhi: The percentage of oil import dependency based on consumption of petroleum products during the year 2018-19 in India stood at about 83.8 percent, Minister of Petroleum and Natural Gas Dharmendra Pradhan said on Monday. In a written response in the Lok Sabha, Pradhan said that the consumption of petroleum products in the year 2018-19 stood at 213.2 MMT. The news comes as the government is looking to cut dependency on oil import and wean the economy away from oil to gas. The Centre is looking to push the share of natural gas in India’s economy to 15 percent by 2030.

Low domestic production pushing up oil import bills

The domestic crude oil output by PSUs and private companies has been tracing a downward trajectory over the past few years. India’s crude oil output in the April-November period of financial year 2019-20 settled at its lowest in the last seven years, data sourced from the Ministry of Petroleum and Natural Gas showed. The crude oil output for the April-November period of FY2019-20 stood at 21724.76 Thousand Metric Tons (TMT). Data also showed that crude oil output has declined steadily over the course of the last seven years.

Total capacity storage of petroleum products is 74 days

Pradhan said that Indian Strategic Petroleum Reserve Limited (ISPRL), a government of India Special Purpose Vehicle, has established Strategic Petroleum Reserves (SPR) facilities with total capacity of 5.33 Million Metric Tonnes (MMT) at three locations: Vishakhapatnam, Mangaluru and Padur. As per the consumption pattern of 2017-18, the total capacity is estimated to provide for about 9.5 days of crude oil requirement. Oil Marketing Companies (OMCs) currently have stock for 64.5 days.  Hence, total capacity storage of petroleum products is 74 days.

Two additional SPR facilities to be established

The government has given ‘in principle’ approval for establishing two additional SPR facilities with total storage capacity of 6.5 MMT at two locations: Chandikhol in Odisha (4 MMT) and Padur in Karnataka (2.5 MMT). As per the consumption pattern of 2017-18, 6.5 MMT SPR capacity is estimated to provide for about additional 11.57 days of India’s crude oil requirement. The government has also given ‘in principle’ approval for exploring public private partnership model for Phase II. The petroleum products are sold by Oil Marketing Companies (OMCs). Any profit / loss on sale of petroleum products accrues to the OMCs and not to the government, the minister told the Lok Sabha.