The average price of India’s crude oil imports fell to below $70 per barrel this month, for the first time since 2021, as international benchmarks plunged amid trade and tariff uncertainty.
India, which imports 88% of the crude it consumes, saw its average cost of crude oil imports plunge by 17.87% in April compared to March 2024. The average import cost stood at $69.39 per barrel for the first two weeks of this month—the lowest level since August 2021, Indian outlet Hindustan Times reported on Tuesday.
The lower import price could boost purchases by Indian refiners who are sensitive to the price of crude.
The lowest crude import cost in nearly four years could also lead to lower prices for gasoline and diesel for Indian consumers, according to Hindustan Times.
India last reduced the prices at the pump in March 2024, ahead of the general election last year.
Low import bills are very good news for India, the world’s third-largest crude oil importer, which depends on imports for more than 88% of its oil consumption.
India’s crude import dependence hit a record high of 88.2% in the April 2024 to February 2025 period and set a record high in the fiscal year ending March 31, 2025, as Indian fuel demand continues to grow while domestic crude production remains flat.
The Indian import dependence in the full 2023/2024 fiscal year averaged 87.8%. As import and demand trends have shown in recent months, the 2024/2025 fiscal year will see an even higher – an all-time high – reliance on crude oil imports.
Last year, India surpassed China as the world’s largest oil demand driver, amid growing demand for fuel transportation in India and slowing gasoline and diesel demand in China due to the advance of electric vehicles and LNG-fueled trucks in the world’s top crude oil importer.
This year was set for another healthy demand growth in India, but the U.S. trade policies with increased tariffs and uncertainties could undermine global trade and economic growth.
By Tsvetana Paraskova for Oilprice.com