India’s crude oil imports rise in March on demand recovery
India’s crude imports rose about 4.2 per cent in March to 19.03 million tonnes from a year earlier, government data showed on Monday, as consumption picked up in the world’s third-largest oil importer after COVID-19 curbs were eased. India’s fuel demand had scaled a three-year peak in March, with petrol sales hitting an all-time high, as demand rose and the market built up supplies ahead of expected price increases. “The increase in imports can be attributed to demand recovery; COVID curbs have eased, there is pick-up in the industry and economy with schools, colleges and all opening,” said Prashant Vasisht, vice president and co-head, corporate ratings at ICRA. “Also, Indian companies, both from the private and public sector, are not shying away from buying and utilizing cheaper crude available from Russia.” India has bought more than twice as much oil from Russia since it invaded Ukraine as in the whole of 2021, at a time when Western sanctions have prompted many oil importers to shun trade with Moscow. Imports of oil products rose 9 per cent month-on-month, but were down 9.5 per cent from 2021 at 3.62 million tonnes. Exports of oil products climbed 10.9 per cent from a year earlier and of the total 6.74 million tonnes exported in March, diesel accounted for 3.37 million tonnes. India – Asia’s third-biggest economy – holds surplus refining capacity and is a major exporter of refined fuels. “A lot of European companies are opting not to buy Russian crude and refined products. And even before the war, there was a lack of stock levels of diesel in Europe. So, since there’s healthy demand, it has lead to increase of product exports for India,” ICRA’s Vasisht said.
India asks GAIL to import LNG to meet rising city gas demand
India has mandated state-run GAIL (India) Ltd to import gas and buy from local difficult fields to meet growing demand growth from household and transport sectors as cheaper supplies from old blocks is not enough, a government order said. City gas distributors (CGD) have set up sales network to supply gas to transport and households across the country, buoyed by Prime Minister Narendra Modi’s aim to raise the share of gas in India’s energy mix to 15% by 2030 from 6.7% now. These companies gets a priority in half yearly allocation of gas from the old fields, sold at a cheaper rate of $6.1 per million British thermal units (mmBtu), and the shortfall is met through imports. The distribution companies pass on the costs of gas purchases to their customers leading to differential pricing of fuel in the country. Now, the oil ministry has asked GAIL to buy gas produced from the fields in difficult areas at the ceiling price fixed by the government or actual price which ever is lower. The current ceiling price of the gas from difficult fields is $9.92/mmBtu, lower than the spot prices of the liquefied natural gas