Due to a slowdown in demand as a result of Covid-19-induced mobility restrictions in various parts of the country, India’s crude imports have plateaued in April 2021.
According to Petroleum Planning and Analysis Cell (PPAC) data, India imported 18.26 million tonnes (mt) of crude oil paying about $8.5 billion in April 2021, almost the same level as 18.24 mt tonne crude oil import in March 2021.
Imports typically increase in the first month of the fiscal year, depending on current oil prices, as oil companies stock to meet the needs for the entire year. However, due to a nearly 10% drop in demand this year, imports have been restricted.
Also, current crude is priced around $68-70 per barrel, and oil companies expect this price to fall in the coming months as a result of Covid-induced demand suppression and Iran’s re-entry into international oil trade, which could increase supplies and soften oil prices again.