Beyond the Barrel: Securing India’s Energy Future

India’s crude oil import landscape has witnessed a structural shift. As per the latest data (FY 2024-25):

Total Import Dependency: India imports approximately 89.1% of its crude oil requirements.
Top Suppliers (By Share):
- Russia: ~36-37% (Largest supplier, driven by price discounts).
- Iraq: ~18-19% (Consistently the second-largest traditional supplier).
- Saudi Arabia: ~15-16%.
- United Arab Emirates (UAE): ~9-10%.
- USA: ~6-7% (Growing share, increasingly strategic).
Trend: While Russian imports have seen some volatility recently due to payment and sanction issues, it remains the dominant supplier, significantly altering the traditional dominance of OPEC nations in India’s basket.

Definition: The Indian Crude Oil Basket is a weighted average of the prices of the specific mix of crude oils that Indian refineries process. It serves as an indicator of the raw material cost for Indian refiners.
The Composition (The Mix): It is calculated based on a mix of two types of crude:
- Sour Grade: (High sulfur content) – Benchmark is Oman & Dubai crude.
- Sweet Grade: (Low sulfur content) – Benchmark is Brent Crude (dated).
The Ratio: The ratio generally leans heavily towards Sour Grade (approx. 75:25 Sour to Sweet ratio).
- Why Sour? Sour crude is generally cheaper than Sweet crude. Indian refineries have upgraded their technology to process this cheaper, “tougher” crude to save costs.
The price of the Indian Basket is published daily by the Petroleum Planning and Analysis Cell (PPAC). Fluctuations in this basket directly impact the price of petrol/diesel (under deregulation) and the Current Account Deficit (CAD).

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