Crude oil prices are rising due to rising Russia-Ukraine tensions. The price of crude oil reached $ 99 per barrel on Tuesday.
Demand is expected to pick up with improvement in economic activity.
one side crude oil price ,Crude Oil Price) is touching the sky, on the other side economic activities ,Economic ActivityThe demand for fuel in the country is increasing continuously due to the improvement in According to the report of the Petroleum Planning and Analysis Cell (PPAC) under the Oil Ministry, fuel demand in the country is expected to grow by 5.5 per cent in the fiscal year 2022-23, starting April 1, with economic activity picking up. According to the report, the fuel consumption is estimated to increase to 214.5 million tonnes in the financial year 2022-23. It is likely to be 203.22 million tonnes in the current financial year ending March 2022. In the financial year 2019-20, the consumption of fuels like petrol, diesel and LPG in the country was 214.1 million tonnes.
The demand for petroleum products grew by 4.9 per cent in the first nine months of the current financial year. Fuel consumption stood at 148.3 million tonnes in April-December 2021. The consumption of petroleum products in the country was 194.3 million tonnes in 2020-21. During this, a ‘lockdown’ was imposed to prevent the spread of the Kovid-19 epidemic, which affected economic activities.
Petrol consumption estimated to increase by 7.8 percent
According to PPAC, the consumption of petrol in the next financial year 2022-23 is estimated to increase by 7.8 per cent to 33.30 million tonnes. At the same time, diesel sales are expected to increase by 3.9 percent to 793 million tonnes.
Aircraft fuel expected to increase by 49 percent
Jet fuel consumption is expected to increase by 49 per cent to 7.6 million tonnes in 2022-23. However, this is less than the pre-epidemic level of 8 million tonnes. The demand for cooking gas (LPG) is expected to grow by 4.5 per cent to 29.6 million tonnes in the next financial year.
Kerosene oil sales expected to remain stable
According to PPAC, sales of kerosene or kerosene are expected to remain stable at 1.5 million tonnes, while naphtha consumption is expected to increase by 3.3 per cent to 15 million tonnes. Petcoke demand is expected to increase by 2.8 per cent to 14.8 million tonnes. At the same time, the sale of coal tar is estimated to increase by 1.8 percent to 79 lakh tonnes.
Oil is getting expensive due to Ukraine Crisis
As we know, India is the world’s largest oil importer. It imports 80 per cent of its oil requirement. 50 per cent of the gas requirement is also imported. Crude oil prices are rising due to rising Russia-Ukraine tensions. Crude oil prices crossed the $99 per barrel level on Tuesday and reached a new record high. According to the Oil Ministry data, in the current financial year between April and December 2021, India imported oil worth $ 82.4 billion. This is a jump of 108 per cent in the bill as compared to the previous financial year. In the financial year 2019-20, between April and December 2020, India imported crude oil worth $ 39.6 billion. The total oil import bill for the financial year 2020-21 was just $ 62.2 billion and for the financial year 2019-20 this bill was $ 101.4 billion and for the financial year 2018-19 this bill was $ 112 billion.