According to an industry official, India’s oil import bill is going to top US$50 Billion in the current fiscal year. Last year it was at US$43 Billion.



The bad news is that the increased oil cost will have a reverse impact on India’s trade deficit that will mount pressure on the Indian currency.



According to S.V. Narasimhan, finance director of Indian Oil Corp, the crude oil prices are climbing more than twenty percent higher than last year in the International market and it will make definite impact on our import bill.



Crude prices are presently hanging around US$73 a barrel. The worst thing is that India imports about three-fourth of the crude it processes.



The rising crude prices have hit Indian Oil and other oil retailers hard. The government has slightly increased domestic prices even as international prices have spike. Therefore, the situation says that another oil price hike is in the pipeline in the coming future.



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