Prime Minister Narendra Modi’s oil bonanza has been nothing short of a ‘get more, pay less,’ offer.
That’s because India’s average oil imports rose 25 percent a year during Modi’s term compared with that of predecessor Manmohan Singh’s second stint, according to Petroleum Planning & Analysis Cell. Yet, the yearly oil import bill has fallen by about 28 percent since 2014.
During the Congress-led United Progressive Alliance’s second term, India's average annual oil import bill was $133 billion for average inbound shipments of 1,90,000 million tonnes. In comparison, average imports rose to 2,37,000 MT in the last four years but costs fell to $95 billion.
The Brent averaged around $97.85 a barrel for UPA II compared with $61.3 during Modi years so far.
That has started changing now though. The crude surged as much as 15 percent in the last three months. With the general election a year away, rising fuel prices could prove to be a worry for Modi as they threaten to increase the current account deficit and also stoke inflation.
(This story was first published on BloombergQuint)
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)