INDIA’S CRUDE OIL IMPORT (Syllabus: GS Paper 2 – IR)

Context: Russia's share in India's crude oil imports fell to 34% in August from 42% in July as state-run refiners sharply reduced imports from Russia.

• Supplies from Russia fell 23% month-on-month to 1.47 million barrels per day (mbd) in August, even as India's overall crude imports fell 5% to 4.35 mbd.
• Russia's seaborne crude exports to China, however, increased to 1.4 mbd in August from 1.3 mbd in July.
• Imports from Russia declined because of the planned maintenance work at some refineries in India, coupled with a decrease in the availability of Russian supplies.

India’s Oil Import/Consumption

• India ranks as the world's third-largest oil consumer, with a daily consumption of approximately 5 million barrels, trailing only the United States and China.
• The country's oil demand is experiencing an annual growth rate of 3-4%.
• Based on these projections, India's oil consumption could potentially reach approximately 7 million barrels per day within the next decade.
• India’s Dependence on OPEC Countries: India’s imports from OPEC countries constitute 85% of our total crude imports and 94% of the gas imports.
• India ranks a distant 21st in crude oil production and 26th in natural gas production.
• Russia has continued to be the single largest supplier of crude oil for India, which is converted into petrol and diesel at refineries.
• Saudi Arabia was India’s second largest supplier and Iraq was the third biggest supplier of crude oil in March 2023.