Russia has maintained its position as the leading oil supplier to India during the fiscal year 2023/24, marking the second consecutive year, as per ship tracking data from industry sources. This trend has significantly reduced the market share of Middle Eastern and OPEC producers to historic lows.
Despite Western nations imposing sanctions on Moscow due to its invasion of Ukraine, India has increased its intake of Russian oil, which is offered at a discounted price. Consequently, Russia has become the primary supplier to India, the world’s third-largest oil importer.
Despite facing challenges posed by sanctions aimed at curbing Moscow’s oil revenue, India has continued its oil purchases from Russia.
While Russia maintains its alliance with the Organization of Petroleum Exporting Countries (OPEC), its share in India’s crude imports has surged, notably at the expense of key OPEC producers in the Middle East.
Data reveals that Russian oil constituted approximately 35% of India’s total crude imports of 4.7 million barrels per day (bpd) in the fiscal year ending on March 31, compared to about 22% in the previous year.
India’s imports of Russian oil reached 1.64 million bpd in fiscal 2023/2024, marking a significant increase of about 57% from the previous year.
Consequently, the combined share of oil imports from Russia, Kazakhstan, and Azerbaijan—members of the Commonwealth of Independent States (CIS)—rose to 39% in 2023/24 from 26% a year earlier. In contrast, the share of Middle Eastern oil in India’s imports declined to an all-time low of 46% from 55%.
Iraq remained the second-largest oil supplier to India, followed by Saudi Arabia, in the fiscal year 2023/24.
Notably, India imported an equal amount of oil from OPEC and non-OPEC nations for the first time in 2023/2024.
The decrease in Saudi oil imports can be attributed to higher official selling prices set by state-owned Saudi Aramco throughout the year, while imports from Kuwait also witnessed a sharp decline as the producer diverted its crude to a new domestic refinery.
