Domestic crude oil production up 2.1% to 2.5 MMT in July, imports decline 6.3% YoY: PPAC

India produced a total of 2.50 million metric tonnes (MMT) of crude oil in July 2023 - registering a growth of 2.1 per cent compared to the year-ago period, according to Petroleum Planning & Analysis Cell (PPAC). Out of 2.5 MMT, Oil and Natural Gas Corporation (ONGC) produced 1.62 MMT of crude oil while Oil India Limited (OIL) and private sector producers contributed 0.28 MMT and 0.60 MMT, data released by the Oil Ministry showed.

Crude oil imports decreased by 6.3 per cent and 2.4 per cent during June 2023 and April-July 2023 respectively, compared to the corresponding period of the previous year. The net import bill for oil and gas was $9.8 billion in July 2023 compared to $15.8 billion in July 2022, according to PPAC.

Out of this, crude oil imports constitutes $10.2 billion, liquified natural gas (LNG) imports $2.1 billion and the exports were $4.1 billion during July 2023, the data showed.

The Indian basket crude price averaged $80.37/bbl during July 2023 compared to $74.93/bbl during June 2023 and $105.49 /bbl during July 2022. The price of Brent Crude averaged $80.05/bbl during July 2023 compared to $74.70/bbl during June 2023 and $112.70/bbl during July 2022.

The production of petroleum products was 22.8 MMT during July 2023 which is 3.6 per cent higher than July 2022. Out of above 22.5 MMT, was from refinery production and 0.3 MMT was from fractionator.

On the other hand, natural gas consumption (including internal consumption) for July 2023 stood at 5,297 MMSCM (million metric standard cubic meters), which was 4.5 per cent higher than the corresponding month of the previous year, according to the official data.

The cumulative natural gas consumption for the current financial year till July 2023 stood at 21,398 MMSCM, which was higher by 3.9 per cent compared with the corresponding period of the previous year.

In addition, LNG import for July 2023 was 2,234 MMSCM which was 1.1 per cent lower than the corresponding month of the previous year. The cumulative import of 9,982(P) MMSCM for the current financial year till July 2023 was higher by 4.7 per cent compared with the corresponding period of the previous year.

The gross production of natural gas increased by 8.3 per cent at 3,123 MMSCM in July from last year. The cumulative gross production of natural gas was 11,687 MMSCM for the current financial year till July, higher by 2.2 per cent compared with the corresponding period of the previous year.

India is dependent on imports to meet over 85 per cent of its crude oil requirements and around 50 per cent of its natural gas requirements.

In June 2023, the country produced a total of 2.43 MMT of crude oil, compared to the same level of 2.4 MMT reported in the year-ago period. The net import bill for oil and gas stood at $9.5 billion in June 2023 compared to $13 billion in June 2022, according to PPAC.