Crude oil imports may go up 85% by year 2012

Aug. 16: The domestic crude oil imports may go up by 85 per cent by 2012 from the current level of 70 per cent even though refining capacity is poised to increase by 58 per cent. India’s dependence on crude oil will increase as domestic discoveries have not been taking place, while the energy demand in future will multiply and rise to the level of 12-13 per cent compared to 7-8 per cent now, says an Assocham finding.
Secondly, the alternate sources of energy though available in abundance in India, their harnessing is again becoming a problem However, the chamber is of the view that the higher crude oil imports will not impact the trade deficit adversely as most of the new capacities addition are aimed at exporting value added products. Hence, the import bill would be to a great extent offset by exports of petroleum products. Exports of petroleum products have been rising significantly since financial year 2005. During financial year 2005, India exports of petroleum products recorded a growth of 96 per cent.
In financial year 2006, petroleum products exports were worth $11.5 billion, employing a growth of 65 per cent. Exports of petroleum products are expected to substantially grow in the coming years, especially after the commissioning of Reliance refinery at Jamnagar.