India Crude Oil Update: Due to buying crude oil from Russia at cheap prices, the country’s oil refinery companies have benefited tremendously. Due to importing crude oil at cheap prices, these companies have saved $ 7 billion in 14 months. It is a different matter that despite the import of cheap crude oil, Indian consumers could not get petrol diesel at cheap prices.
When America imposed economic sanctions on Russia due to Russia’s attack on Ukraine, then Russia offered to sell cheap crude oil to India to save its economy from any external shock. Then the prices of crude oil were skyrocketing in the international market. India immediately grabbed this offer. According to a report in the Indian Express, the result is that in the last 14 months from April 2022 to May 2023, the country’s oil refining companies have saved foreign exchange of about $ 7 billion due to buying crude oil cheaply from Russia.
India is the world’s third largest importer of crude oil. India is dependent on imports to meet 85 per cent of its fuel requirements. After Russia’s attack on Ukraine, the price of crude oil in the international market had reached up to $ 139 per barrel. After this, India started importing crude oil from Russia at cheap prices. Earlier, Russia used to export very little crude oil to India. But due to this discount, Russia became the biggest supplier of crude oil to India.
According to the report, between April 2022 and May 2023, India’s total crude oil import bill has been $ 186.45 billion. Had India imported the same crude oil from another supplier country, India would have had to pay an amount of $196.62 billion. India has imported crude oil worth $40 billion from Russia. India has got this crude oil at the price of $ 79.75 per barrel, which is $ 14.5 cheaper per barrel than the average price of other countries.
Russia’s share in India’s total imports in these 14 months was 24.2 percent. In no time, Russia replaced supplier countries like Iraq and Saudi Arabia, which used to supply the most crude oil to India.
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