India's oil & gas import bill contracts 33% y-o-y in April-June quarter as prices drop

economictimes.indiatimes.com:

India’s oil and gas import bill contracted by a third from a year earlier to $35 billion in the April-June quarter as prices sharply dropped, as per the oil ministry data. Crude oil worth $31.4 billion was imported during the April-June period, lower than $48.1 billion in the same period last year. The volume of oil imports marginally reduced to 60.1 million metric tonnes (mmt) in the first quarter from 60.7 mmt in the same period last year.

Liquefied natural gas (LNG) imports rose 4.3% in volume terms to 7590 mmscm but in value terms dropped 19% to $3.8 billion. Oil and gas prices were extremely volatile in the April-June quarter last year due to the uncertainties induced by the Russia-Ukraine war and the consequent Western sanctions imposed on Moscow. The global crude benchmark Brent averaged $116 per barrel in the April-June of 2022.

It was 35% lower at $76 per barrel in the same period this year. Similarly, the LNG benchmark Japan Korea Marker (JKM) for the April-June period of last year averaged $29 per mmbtu, nearly triple the average of $11 for the same period this year. India has also benefitted from a sharp increase in the import of Russian oil that came at a deep discount to Brent.

The discounts have narrowed from last year but the volume of Russian crude Indian refiners process has sharply increased to 40% of their total imports. A sharp decline in LNG prices from the record highs of 2022 has begun to boost Indian imports slowly but many customers in the country find the current rate of about $12 per mmbtu unaffordable. Natural gas consumption in the country rose 2% year-on-year during the April-June quarter.