India’s petroleum self-sufficiency fell to 17.9 per cent in 2016-17, its lowest annual level since 2011, according to data available with Petroleum Planning and Analysis Cell (PPAC).
The self sufficiency percentage is calculated by using the total production from Indigenous Crude & Condensate and the total petroleum consumption of the country. For the month of April, this percentage fell further to 16.6 per cent, lower from 17.9 per cent seen for the month of April 2016.
India’s fast-growing demand for petroleum products has been the significant contributor to the fall in its self sufficiency in meeting these demands. According to the PPAC data, in the last financial year India’s total consumption was at 194.2 million tonnes, against total production from Indigenous Crude & Condensate of 34.8 million tonnes.
Since 2011, India’s consumption has grown at a faster rate 148 million tonnes in 2011-12 to 194.2 million tonnes in the last financial year. India’s indigenous production on the other hand has fallen from 35.6 million tonnes in 2011-2012 to 34.8 million tonnes in the last financial year. In 2011, the country’s petroleum self-sufficiency was pegged at 24.1%.
For April 2017, the PPAC report said, “Total crude oil processed during April 2017 was 20 million tonnes, a marginal decrease of 0.8 per cent over April 2016. There was a decrease of 4.5 per cent in indigenous crude oil processed over April 2016.” On the other hand, consumption of petroleum products continues to show a healthy growth rate of 3.3 per cent in April 2017 with growth seen in LPG, Naphtha, petrol, diesel, aviation turbine fuel, pet coke and other products' consumption. To be sure, April’s consumption growth rate at 3.3 per cent is lower compared to 10.3 per cent witnessed in the year-ago period, however, the lower growth rates could also be attributed to a high base effect.
For the financial year 2016-2017, the country’s total gross petroleum import imports inclusive of crude and petroleum, oil and lubricants (POL) segment stood at $80.8 Billion. PPAC expects, the import bill of crude oil alone to increase by 26 per cent from $70 billion during 2016?17 as against $88 billion in the floowing year.