Why the Russia-Ukraine conflict may put the brakes on Indian fuel imports

Demand for all oil products may grow at only 2-3% in FY23, slower than the current fiscal and nearly half the 5.5% growth estimated by the petroleum ministry, according to industry officials

India’s appetite for imported crude oil may wane in fiscal year (FY) 2023 from record levels in pre-pandemic 2019-20 fiscal as higher oil prices, a spillover from the conflict in Ukraine, and increasing use of biofuels affect domestic demand for petroleum products. Brent crude surged to a nine-year high, shy of a July 2008 record $147.50 a barrel, before declining to around $100 a barrel — but the volatility in commodity rates will slow global economic growth and use of fuels.

Demand for all oil products may grow at only 2-3 per cent in FY23, slower than the current