Paris: Fatah Birol, executive director of the International Energy Agency (IEA), has predicted that India’s oil import bill will double in the second half of the year following the decision by Saudi Arabia, Russia, and other Organization of the Petroleum Exporting Countries (OPEC) to cut oil production. is likely to increase. Birol said, “Saudi Arabia, Russia, and other OPEC plus producers have decided to cut oil production. When we look at the analysis of the International Energy Agency and the analysis of almost every serious institution looking at the oil markets, the markets will be very tight in the second half of this year.
The Executive Director of IEA said that India is an energy-importing country and imports most of the oil for its consumption needs. Therefore, the decision of major producers to cut oil production will directly burden the Indian economy and its consumers. Birol said that the pressure on oil prices and supply security concerns will ease in the coming years, as more countries are now producing and exporting their natural gas, thereby increasing the flow of Liquefied Natural Gas (LPG) in the market. India has become a significant player in the global oil market since the start of the Russia-Ukraine war, with the European Union avoiding Russian products, including oil.
On the other hand, India has increased its crude oil imports from Russia at concessional rates. Also, refined oils like diesel and jet fuel have enabled their entry into European countries through the back door. According to a report released in January, India’s oil imports have increased 33 times more than a year ago. On this, the top IEA official said that this is a valid step. Fatah Birol said that India is following international rules and regulations in terms of trade and financial rules. He said, ‘India is doing it in a transparent manner, and is making a profit by importing crude oil at less subsidized price than others. This is definitely a valid step.
