In recent months, India has been sourcing the majority of its crude oil from Russia, making Russia its fourth-largest trading partner. However, December saw a notable dip in crude oil imports from Russia, reaching the lowest levels since January 2023. Indian refineries imported 14.8 lakh barrels of crude oil daily in December, marking an 11.6% decrease compared to November.
According to data from commodity market analytics by Kpler, there were no deliveries of Sokol grade crude from Russia to India in December. Sokol crude, produced in the distant Far East of China, faced challenges due to Western restrictions and payment issues, resulting in delays in its arrival to Indian shores.
In December, Russia accounted for 32.9% of India’s total oil imports, with a total of 45.1 lakh tons of oil. This was a decline from November when Russia held a 37.1% share in India’s oil imports. The geopolitical landscape, especially the ban imposed on Russian oil by Western countries after the Ukraine conflict, has led Russia to offer substantial discounts, which India has capitalized on.
Despite this, India remains the third-largest consumer of crude oil globally, importing over 85% of its oil requirements. The article concludes with insights into the unchanged fuel prices in India and speculations about potential relief in petrol and diesel prices in the upcoming election year.
