India has saved approximately $13 billion over the past two years by importing discounted crude oil from Russia, reports ICRA. Despite a decreasing trend in discounts year-on-year, India’s crude imports from Russia surged to 36% in fiscal year 2024 from 2% in 2022, compressing the current account deficit by 15–22 bps. However, monthly discounts on Russian crude narrowed from 23% to around 8% throughout fiscal year 2024. As discounts persist at low levels, India’s net oil import bill may rise to $101-104 billion in fiscal year 2025. Russia’s offer of discounted crude, following Western sanctions, has made it India’s top supplier, surpassing traditional suppliers like Iraq and Saudi Arabia.
India Saves Billions with Discounted Russian Crude Imports
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