NEW DELHI: India saved roughly $2.7 billion by importing discounted Russian oil within the first 9 months of this yr, based on calculations based mostly on authorities knowledge, serving to it help financial development and easing stress on its commerce deficit.
Crude oil accounts for a few third of India’s general imports by worth.
The world’s third-biggest oil importer and client changed Europe as the biggest purchaser of seaborne Russian crude this yr after the West imposed sanctions on Moscow over its invasion of Ukraine final yr.
Entry to low cost Russian oil enabled India to chop imports from the Center East, the place costs strengthened following Saudi Arabia’s voluntary further provide cuts since July.
India imported 69.06 million metric tons of Russian oil, equal to 1.85 million barrels per day (bpd), between January and September, commerce ministry knowledge confirmed, together with Russian oil imported from South Korea, Greece and Spain by means of transshipments.
The common worth for Russian oil delivered to Indian refiners was $525.60 per ton throughout that interval, together with delivery and insurance coverage prices, Reuters calculations based mostly on ministry knowledge confirmed.
By comparability, the common landed value of Iraqi oil, which is of comparable high quality to the medium-sour Russian Urals crude that accounts for the majority of India’s purchases from Russia, was $564.46 per ton throughout the identical interval.
That equates to financial savings of $2.7 billion for India in contrast with what it might have paid if it had purchased Iraqi oil as a substitute, the calculations confirmed.
Russia has surpassed Iraq as prime oil provider to India, with Saudi Arabia relegated to 3rd place. Different Russian grades bought by India embody gentle candy ESPO and Sokol.
China, the world’s prime oil importer, has reaped financial savings this yr of practically $10 billion by means of file purchases of oil from nations below Western sanctions together with Russia, based mostly on Reuters calculations.
In contrast to China, India does not purchase Venezuelan and Iranian oil.
By importing Russian oil, Indian refiners profit from decrease feedstock prices, which have buoyed gross refining margins and curtailed income loss from subsidised retail gas gross sales.
State refiners haven’t revised pump costs for greater than a yr, aiding authorities efforts to rein in inflation, whereas refined merchandise demand has grown about 14% this yr.
Crude oil accounts for a few third of India’s general imports by worth.
The world’s third-biggest oil importer and client changed Europe as the biggest purchaser of seaborne Russian crude this yr after the West imposed sanctions on Moscow over its invasion of Ukraine final yr.
Entry to low cost Russian oil enabled India to chop imports from the Center East, the place costs strengthened following Saudi Arabia’s voluntary further provide cuts since July.
India imported 69.06 million metric tons of Russian oil, equal to 1.85 million barrels per day (bpd), between January and September, commerce ministry knowledge confirmed, together with Russian oil imported from South Korea, Greece and Spain by means of transshipments.
The common worth for Russian oil delivered to Indian refiners was $525.60 per ton throughout that interval, together with delivery and insurance coverage prices, Reuters calculations based mostly on ministry knowledge confirmed.
By comparability, the common landed value of Iraqi oil, which is of comparable high quality to the medium-sour Russian Urals crude that accounts for the majority of India’s purchases from Russia, was $564.46 per ton throughout the identical interval.
That equates to financial savings of $2.7 billion for India in contrast with what it might have paid if it had purchased Iraqi oil as a substitute, the calculations confirmed.
Russia has surpassed Iraq as prime oil provider to India, with Saudi Arabia relegated to 3rd place. Different Russian grades bought by India embody gentle candy ESPO and Sokol.
China, the world’s prime oil importer, has reaped financial savings this yr of practically $10 billion by means of file purchases of oil from nations below Western sanctions together with Russia, based mostly on Reuters calculations.
In contrast to China, India does not purchase Venezuelan and Iranian oil.
By importing Russian oil, Indian refiners profit from decrease feedstock prices, which have buoyed gross refining margins and curtailed income loss from subsidised retail gas gross sales.
State refiners haven’t revised pump costs for greater than a yr, aiding authorities efforts to rein in inflation, whereas refined merchandise demand has grown about 14% this yr.
