India's oil import bill is likely to rise to 800 billion rupees (17.5 billion dollars) in the year to March 31 2001, from 535 billion rupees last year, Petroleum Minister Ram Naik said on Friday.
He said the steep rise was due to the surge in global oil prices, which at one point reached a nine-year high of 35 dollars a barrel.
Naik said even though the price had since fallen to 24 dollars a barrel, a reduction in domestic oil prices would only be possible after the global cost fell below 20 dollars.
India, which imports 70 percent of its oil needs, hiked domestic fuel prices in September.
However, the increase was not enough to absorb the global shock.
The minister also announced 25 oil blocks were being offered for exploration by private firms, of which 16 were located offshore and nine on land.
"For the first time, deep water blocks on the west cost and blocks in the petroleum rich states of Assam and Gujarat have been included under the new exploration licensing policy," he said.
India had earlier offered 25 blocks under the new exploration policy to private firms in January last year.
Naik said the rise in oil prices should encourage companies and elicit a good response from bidders -- NEW DELHI (AFP)
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