India spent $15. 4 billion on crude oil imports in September, up 46% from $10. 5 billion a year earlier, while the volume of crude purchased increased 7% to 21. 7 million tonnes from 20. 3 million tonnes. The sharp gap between spending and volume reflected higher international oil prices amid renewed tensions in the Middle East.
The Indian basket measures the average price of the crude grades imported by Indian refineries. It combines Dated Brent as the sweet-grade benchmark with the Oman-Dubai average as the sour-grade benchmark.
The pressure extended beyond crude. India’s liquefied natural gas imports fell 8. 5% in September to 2,957 million standard cubic metres from 3,233 million, while the LNG import bill remained at $1. 2 billion.
Reduced oil flows from the Middle East and heightened shipping risks around the Strait of Hormuz added to the cost of supplies reaching India. Freight rates on the route from Saudi Arabia’s Ras Tanura to India were reported to have risen three- to fourfold since February 28, when the conflict began and the strait was closed by Iran.