India’s crude oil import bill rose 2.7% in FY25, reaching $137 billion, up from $133.4 billion in the previous fiscal, according to data from the Petroleum Planning and Analysis Cell (PPAC). This increase came alongside a 3.4% rise in crude volumes, with imports totaling 234.3 million tonnes, compared to 226.6 million tonnes in FY24.
March Imports Hit Record Highs
In March 2025 alone, India imported 22.1 million tonnes of crude—marking a 6.3% year-on-year increase—while the monthly crude import bill remained steady at $12.1 billion. Crude import dependency also edged up to 88.2% in FY25, from 87.8% in FY24, reflecting stronger domestic demand.
Russian Crude Maintains Lead with Discounted Supplies
Russian crude shipments made a strong comeback in March following a brief dip in February. Russia averaged 1.68 million barrels per day (bpd) in Q1 2025, supported by discounted pricing on Urals and other grades, and ongoing access to non-sanctioned vessels.
March crude intake hit a record 5.3 million bpd, with Russia contributing 1.88 million bpd. Other top suppliers included Iraq (0.9 Mbd), Saudi Arabia (0.56 Mbd), UAE (0.43 Mbd), and the US (0.29 Mbd). Analysts say Russian oil remained $3–8 cheaper per barrel than West Asian and US grades, even after adjusting for longer routes and shadow fleet reliance.
Indian Refiners Increase US Crude Purchases for Diversification
Amid global market uncertainty, Indian refiners have turned to the United States for greater supply diversification. Imports from the US surged to 2,89,000 bpd in March 2025, up from 113,000 bpd a year earlier. “WTI and Mars blends offer stable arbitrage opportunities for Indian complex refiners,” noted Sumit Ritolia, Lead Analyst at energy intelligence firm Kpler.
Domestic Crude Output Declines Despite Rising Demand
India’s domestic crude production dipped to 28.7 million tons in FY25, down from 29.4 million tons the previous year. The country now imports around 88% of its crude oil and 50% of its natural gas needs.
Policy Push for Energy Self-Reliance Gains Momentum
To address its high import dependence, the government is stepping up exploration and production (E&P) efforts, driven by recent amendments to the Oilfields Act. As reported by constructionworld.in, the revised legislation expands the definition of “mineral oils” to include shale gas, coalbed methane (CBM), oil shale, and more, enabling broader E&P activity.
