India’s imports of Russian oil rose significantly in March, according to a report by the Financial Express on Monday. The lower prices made it more economical for refineries. The cheaper prices have also led to an increase in the availability of non-sanctioned tankers, making it easier for Indian companies to transport oil. As a result, India’s imports of Russian oil rose in March, following a decline in the previous months, the report added.
According to Kpler, a specialized information service for the oil trade, India’s imports of Russian oil averaged 1.85 million barrels per day in the first three weeks of the month. This represents a significant increase from the 1.47 million barrels per day imported in February and the 1.64 million barrels per day in January, according to Kpler’s data.
Russian oil accounts for over 35% of India’s total oil imports in March, up from around 31% in February. The increase has helped Moscow strengthen its position as a major oil supplier to the subcontinent.
India had previously assured that it would continue to buy Russian oil as long as it is sold below the price of $60 per barrel and transported on non-sanctioned tankers, with no involvement from sanctioned firms or individuals, the Financial Express reported.
” This volume increase in March occurred while Russia’s domestic demand for oil fell due to Ukrainian drone attacks on several refineries . the increasing availability of Russian oil exports has driven the price of Ural (Russia’s leading oil quality) down, with the average prices in February at $59.9 per barrel and in March so far at $56 per barrel. This suggests that Ural oil remains below the price cap of the G7, allowing buyers and sellers to use Western shipping companies and insurers for the transport” Kpler analyst Sumit Ritola was quoted as saying by the Financial Express.
According to Bloomberg, India’s oil imports from Russia in the previous month fell to the lowest level since January 2023, with the decline occurring just weeks after the introduction of new US sanctions against several Russian oil companies and numerous oil tankers. The sanctions, imposed by the US and the UK, targeted Russian oil producers, including Gazprom Neft and Surgutneftgas, as well as 183 tankers involved in the transport of Russian oil.
The measures have had an impact on both India, the world’s third-largest oil importer, which relies heavily on oil shipped by sea, as well as China, the world’s largest importer.