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Even $1 rise in crude can inflate import bill by Rs 61.6 bn: India Ratings

According to the ratings agency, if the organisation of the petroleum exporting countries (Opec) and its allies decide to hold their supply, oil prices are likely to rebound

Press Trust of India  |  Mumbai 

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As India continues to be a large importer of crude oil, a change of even $1 per barrel will impact the country's import bill by Rs 61.6 billion, says India Ratings (Ind-Ra).

According to the ratings agency, if the (Opec) and its allies decide to hold their supply, oil prices are likely to rebound.


"This will increase India's import bill as it meets over 80 per cent of its demand through imports, and a change of even $1 per barrel will impact the country's import bill by Rs 61.6 billion," it said.

According to Ind-Ra, Brent price, the global benchmark for crude prices, continued its upward trajectory to hit a four-year high of $86.07 per barrel on October 4 this year, as the market grappled with the expected loss of oil supply from sanction-hit

From mid-October 2018, however, an increase in supply led to a gradual decline in brent prices.


Furthermore, the waived off such sanctions on November 3 for eight countries, including India and other major importers of oil from

Subsequently, the prices dipped to $72.68 per barrel on November 5, down 14.6 per cent month-on-month, on fears of a glut in the market.

The declining trend was reversed again when Brent prices increased on November 12 on an announcement by Saudi Arabia that it would cut its exports by 500,000 barrels per day in December, and speculations that the will slash output in 2019.

First Published: Sat, November 24 2018. 02:19 IST
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