Indiaآ’s crude import bill set to double

Vol 3, PW 18 (29 Sep 99) News in Brief

India's oil import bill is expected to rise to $10.8bn for the year to March 2000 as against $5.9bn last year.

The steep hike is due to an almost 100% rise in global crude prices over the past five months. Reserve Bank of India (RBI) officials maintain the balance of payments outlook is comfortable in the current fiscal year, despite a rise in the oil import bill.

Government circles, however, express concern over the impact on the economy, in the face of a weakening Rupee and the continued rise of rising global crude oil prices. Preliminary statistics from the oil ministry show that domestic consumption of petroleum products is currently 3.5% higher than initially forecast.

This will result in more petroleum product imports and a continued rise in the oil import bill.

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