India's Crude Oil Import Bill Soars 46% as Middle East Crisis Drives Up Prices
India paid $15.4 billion to import crude oil in September, up by 46% from the year-ago import bill of $10.5 billion, as international oil prices and the Indian import crude basket soared amid reignited tensions in the Middle East.
India, the world’s third-largest crude oil importer, saw its crude imports rise by 7% in September from a year earlier. But the price to pay for crude oil imports soared by 46%, according to data from the Oil Ministry’s Petroleum Planning and Analysis Cell (PPAC) cited by the Times of India.
The Indian basket of crude, the reference for the price of India’s imports, averaged $116.09 per barrel in September, according to government data, higher than the $114.48 per barrel in April at peak blockage at the Strait of Hormuz.
The Indian basket of crude oil is the average of a derived basket comprising a sweet-grade benchmark, Dated Brent, and the sour-grade benchmark of the Oman and Dubai average imported by Indian refineries during each month.
In the period April to September, India’s crude oil import bill also jumped by 46.3% to as high as $90.6 billion, up from $61.9 billion in the same period last year, entirely due to the surge in oil prices as import volumes have remained flat or lower than year-ago levels in recent months.
India’s crude oil import bill has soared this year, due to the reduced oil flows from the Middle East and the high risks to shipping in the Strait of Hormuz.
The freight rates on the key route from Ras Tanura on Saudi Arabia’s Persian Gulf to India have soared three to four times since February 28, when the war began, and Iran closed off the Strait of Hormuz.
India’s import costs for October could exceed the September $15.4 billion cost as the Indian crude import price has averaged $121.25 a barrel so far this month, according to government data.
