Recent trends in international prices have led to a positive shift for India, reducing its crude import costs despite rising volumes
A decline in global crude oil prices in recent months has led to a reduction in India’s oil import bill year-on-year for September, October, and November, despite an increase in import volumes during these months, data from the Petroleum Ministry indicates.
According to a report by the Indian Express, this trend marks a reversal from the first five months of the current financial year, when the value of oil imports was higher compared to the same period in the previous fiscal year.
India’s oil imports in value terms declined by 9% year-on-year to $31.2 billion during the September-November period, even as import volumes increased by 4.4% to 57.2 million tonnes, according to provisional data from the Petroleum Planning & Analysis Cell of the Oil Ministry.
The decline in import value was most pronounced in November, falling by 13%, followed by a 10.9% drop in October and a 2.8% decrease in September compared to the same months in the previous fiscal year. Meanwhile, import volumes showed a steady increase, rising by 2.7% in November, 4.3% in October, and 6.3% in September, reflecting growing demand amid softened global crude prices.
During the April-August period of the current fiscal year (starting in April), India’s cumulative oil imports in value terms increased by 14.2% year-on-year to $60.3 billion, while import volumes registered a modest growth of 2.6%, reaching 101 million tonnes.
Meanwhile, India has intensified its efforts to finalize a long-term agreement for crude oil imports from Russia by the next fiscal year beginning in April, Business Standard reported earlier this month, citing sources in the Petroleum Ministry. Discussions have been ongoing for months, led by a consortium of state-owned refiners, which are being urged to accelerate negotiations. Russia is now the largest oil supplier to India, accounting for up to 40% of its overall crude imports.
In a separate development, India’s largest private refiner, Reliance Industrial, has reportedly signed a deal with Russian state energy giant Rosneft to receive supplies of nearly 500,000 barrels per day of various crude grades. Worth roughly $13 billion a year at current prices, the energy deal is the biggest ever between Moscow and New Delhi, Reuters reported earlier this month. The shipments to Reliance’s giant refining complex at Jamnagar in the western state of Gujarat are expected to start in January.
