The cost of importing petroleum products has increased between 2016-17 and 2020-21
The import cost of petroleum products has increased by 39.6 percent in the last four years between 2016-17 and 2020-21.
According to official data from the Petroleum Ministry, the cost increased by 39.6 per cent to $14.8 billion in 2020-21, compared to $10.6 billion incurred by the exchequer on imports of petroleum products during 2016-17.
Also since 2016-17, the cost of importing petroleum products has increased steadily. It was $13.6 billion in 2017-18, increased to $16.3 billion in 2018-19, while it increased to $17.7 billion in 2019-20.
Although the cost of 2020-21 ($14.8 billion) was less than the money spent for the purpose in 2019-20 ($17.7 billion), official sources said the cost of importing petroleum products is rising, as global crude Oil prices were seen. Rapid growth in recent times.
He further said that the domestic price of crude oil is linked to the international benchmark(s) of crude oil prices. These benchmarks are influenced by a number of factors including supply and demand, the impact of the COVID scenario and the current geopolitical situation. He noted that the linear correlation between pricing and any one of these factors in isolation is uncertain.
Meanwhile, to ensure uninterrupted supply of petroleum products in the country, Public Sector Undertakings (PSUs) import petroleum products to bridge the supply-demand gap in the domestic market.
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