India’s crude import bill declined by 11% to $80.9 billion during April-November of FY26, compared with $91.9 billion in the year-ago period thanks to lower prices, according to data from the government’s petroleum planning and analysis cell.
The country imported 163.4 million tonnes (MT) of crude oil during April to November, up from 159.5 million tonnes in the same period of previous fiscal.
India’s reliance on crude oil imports increased to 80.2% during the period, up from 79.8% in April-November, 2024 amid rising demand. While the dependency increased, the country’s domestic production of oil declined marginally by 1.5% during the period at 18.8 MT.
In November, the country imported 21.1 MT of crude oil, against 18.9 MT in the year-ago period. The import bill for last month stood at $9.9 billion, unchanged from the same period last year.
Why Russian Imports Peaked in November
Although steep discounts on Urals seen in early 2022 have narrowed over time, Russian crude still ranks among the most economically attractive grades in India’s import portfolio. The purchases of Russian oil turned stronger and hit a five-month high of 1.8 million barrels per day (BPD) in November ahead of the deadline for the US sanctions on two large Russian oil firms — Rosneft and Lukoil — to take effect. Refiners accelerated scheduling and speeded up vessel turnarounds, particularly for Rosneft- and Lukoil-linked cargoes.
Shipments of Russian grade accounted for over 35% of the country’s total crude import mix in the month, as per data from Kpler.
The US last month imposed sanctions on Russia’s oil companies Lukoil and Rosneft that largely fund Moscow’s war against Ukraine. The sanctions mark a significant escalation and are poised to reshape India’s crude import strategy, as per analysts.
Oil imports from Russia averaged 1.5 million BPD in the first ten days of December, with predictive flows pointing to a potential rise to 1.6 million BPD, according to Kpler.
From Direct Trade to Opaque Channels
The analytics firm noted that while some state refiners including Indian Oil and Bharat Petroleum continue sourcing Russian oil, others like Hindustan Petroleum and MRPL have reduced Russian crude liftings.
In the medium term, refiners are already adjusting. Kpler had noted that there is a shift toward non-designated Russian entities, more use of opaque trading channels, and increased sourcing from the Middle East, West Africa, and the Americas.