With international crude oil prices touching an all-time high of $102 a barrel, the Economic Survey on Thursday advised privatisation of old oil fields to raise output and reduce India's import dependence.

State-run firms Oil and Natural Gas Corp (ONGC [Get Quote]) and Oil India Ltd (OIL) have seen oil output fall from old fields like those in Gujarat and Assam, and new technology will be needed to raise recovery.

India, which spent $ 48.389 billion to import its crude oil needs in 2006-07, has already spent $ 48.02 billion on crude imports in the first nine months of the current fiscal because of rise in international oil prices.

"The international price of crude oil and petroleum products has increased phenomenally in recent months. The crude oil price of the Indian basket touched an all-time high of $ 92.13 per barrel on November 26, 2007," it said.

The surge in global oil prices had "a significant impact on the oil marketing companies and the Indian economy as India imports about 72 per cent of the crude oil requirement." The Government this month raised price of petrol and diesel by Rs 2 per litre and Re one a litre respectively, that could contribute 0.19 per cent increase in inflation.

The pre-Budget survey that was tabled in Parliament on Thursday, suggested: "Sell old oil fields to private sector for application of improved/enhanced oil recovery techniques."

Besides stepping up domestic production, the remaining deficit would have to be bridged by entering into strategic geo-political alliances to access energy assets in the region, the Survey said, pointing to the need of making investments in energy chain in Middle East and Africa.

Economic Survey 2007-08: Complete Coverage