Volume : IV, Issue : IV, April - 2014

Crude Oil Import in Inida – A Comparative Study Between Pre and Post Reform Period

Dr. S. Gandhimathi

Abstract :

 In 2009, India imported 2.56 million bar rels of oil per day, making it one of largest buyers of crude oil in the world. (Crude oil industry http;//www.oil price .net)              The petroleum industry in India mostly consists of public sector companies such as Oil and Natural Gas Corporation (ONGC), Hindustan Petroleum Corporation Limited (HPCL) and Indian Oil Corporation Limited (IOCL). There are some major private Indian companies in oil sector such as Reliance Industries Limited (RIL) which operates   largest oil refining complex. (oil and gas htt;//oil price). The development of the Indian petroleum industry began on a very slow note. It started mainly in the northeastern part of India especially in the place called Digboi in the state of Assam. Until the 1970's, the production of petroleum and the exploration of new locations for extraction of petroleum were mainly restricted to the northeastern state in India. However, an important advancement in the Indian petroleum industry came with the passing of Industrial Policy Resolution in 1956, which focused on the growth and promotion of industries in India. Another major incident was the discovery of Bombay High, which changed the scenario of the Indian petroleum industry drastically. The Indian petroleum industry was sponsored completely by the government, and all its related activity was entirely with the government. The petroleum industry has the most significant role to play in changing the Indian economy from an agrarian economy to an industrial economy.

The adoption of liberalization and privatization in July 1991 changed the situation again. The government started allowing the Indian petroleum industry to go into private hands and also entered into government and private joint ventures. The government also eased the stringent regulation process on the petroleum sector. This gave a tremendous boost to this industry. The industry began to grow at a tremendous pace. The production of petroleum and petroleum products also showed a significant rise. Along with liberalization and privatization, the overall economy of India grew. Also, the demand for petroleum products increased at an annual rate of about 5.5%. The demand for petroleum and petroleum products still continues to grow, and there is great potential for investors to invest in India in the sector and gain valuable returns while meeting the increasing demand for the petroleum products. In this backdrop, the  present study attempted to analyse  Crude oil import  in inida –  a comparative study between  pre and post reform period

 To  conclude,  The import of oil was Rs. 179.8 crore in 1971–1972 at current prices. Whereas the import of oil at constant prices was Rs.1882.956 crore in the same year. It reveals that the real value of the import of oil was higher. Both the import of oil at current prices and also at constant prices had been fluctuated. The fluctuation in the current price was observed during 1976–1977, 1982–1983 and in 1984–1985, 1985–1986, 1986–1987, 1987–1988 and 1989–1990. The fluctuation at constant prices was also observed in many of the years. Hence the import of oil in India was not stable. At the end of the pre reform period, the import of oil at current prices was Rs.3767.5 crore and at constant prices was Rs.7926.415 crore. Till the year 1999–2000, the import of oil at constant prices was higher than the import of oil at current prices. From the year 2000–2001 onwards, the import of oil at current prices was higher than at constant prices.

The t value of  crude oil import at current prices and constant prices were statistically significant at one percent level. It implied that the crude oil import differed significantly between pre and post reform period. The value of t pertaining to total oil import was  statistically significant at  one   percent level. It showed that the total oil import had differed significantly between pre and post reform period. The oil import in the post reform period  was significantly higher than in the pre reform period.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

DR.S.GANDHIMATHI Crude Oil Import in Inida - A Comparative Study Between Pre and Post Reform Period Indian Journal of Applied Research, Vol.IV, Issue. IV

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