X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

India's Growing Dependence on Petroleum Imports
May 24, 2017


Last month, at a conference organised by Nomura in Singapore Transport Minister Nitin Gadkari is reported to have made a startling promise...

    We are trying our level best that the day will come when we don't need to import any fuel from any country and that we will be self-sufficient.

As per Business Standard, during the financial year 2016-17, India's total gross petroleum imports inclusive of crude and petroleum, oil and lubricants (POL) segment stood at US$80.8 billion.

Imagine India not having to import crude oil. That would be revolutionary. Our import bills would fall sharply. One of our perpetual challenges - the current account deficit, would stop being such a big worry. Inflation in India would seize to be highly vulnerable to international crude oil prices. And it goes without saying that it would be a game-changer for India's currency. The day India achieves fuel self-sufficiency, the Indian rupee would appreciate sharply against the US dollar.

That's music to the ears! India is the world's third-largest oil consumer. And energy consumption in India is set to grow as our economy remains one of the few 'bright spots' in a slowing, aging world economy.

Now, when would that happen? Mr Gadkari has no specific timeline for the target. That's the interesting bit. Politicians sell hopes and dreams. They can get away without giving facts and timelines.

So, we did our own homework to get a sense how self-sufficient is India when it comes to petroleum products. And here's what we found...

As per Business Standard, while India's petroleum consumption has gone up from 148 million tonnes in 2011-12 to 194.2 million tonnes in 2016-17, the total production from indigenous crude and condensate actually declined during this period from 35.6 million tonnes in 2011-12 to 34.8 million tonnes in 2016-17.

What does this mean?

In a nutshell, India's petroleum self-sufficiency dropped to 17.9% in 2016-17 from 24.1% in 2011-12. The other way to look at it is that India's dependence on petroleum imports has been increasing. And that's not good news.

Data Source: Business Standard, PPAC

This Chart Of The Day was published in The 5 Minute WrapUp - The Singular Quality That Helps Super Investors Beat Markets Black and Blue

Equitymaster requests your view! Post a comment on "India's Growing Dependence on Petroleum Imports". Click here!

  

Our Most Popular Charts

Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

MARKET STATS