India saved over $25 billion by importing crude oil from Russia in FY24. Russian crude supplies and lower international oil prices helped India to save over $25 billion worth of foreign exchange in the year ended March 31 compared to 2022-23. Although it imported almost similar quantities in the two financial years, according to government data.
India imported crude oil worth $132.40 billion in 2023-24 compared to $157.50 billion spent in 2022-23. The country imported 232.7 million tons of crude oil in 2022-23 which fell marginally by 0.08% to 232.5 MT, but saving in terms of value shot up about 16%.
Key reasons for saved $25 billion by India. (India and Russia)
- Lower average cost of India’s crude oil imports in 2023-24 compared to 2022-23, and purchase of highly discounted Russian oil, experts said. The value of savings in Indian currency was about Rs.1.64 lakh crore. India imported crude oil worth over Rs.10.97 lakh crore in 2023-24. It imported more than 87% crude oil paid in dollars.
- India’s average cost of various types of crude oil imports, called the Indian basket, in 2023-24 was $82.58 a barrel, $10.57 a barrel less than $93.15 per barrel in the fiscal year, according to provisional data. The composition of the Indian basket represents an average of Oman and Dubai for sour grades, and Brent for sweet grade.
- Imports of petroleum products also saw a dip in term of value from $28.2 billion in 2022-23 to $25.1 billion in 2023-24. Imports of petroleum products include LPG, naphtha, bitumen and fuel oil. India, one of the global crude oil refining hubs, exported products worth $47.4 billion of total quantities to Africa and Europe in 2023-24 compared to $57.3 billion in 2022-23.
- Gross imports, which include both crude oil and petroleum products, also saw a declining trend in value terms, even as import quantities increased. While 277.3MT of gross petroleum imports in 2022-23 were worth $184.4 billion, gross import in 2023-24 was 280.5 MT worth $155.8 billion.
