By Admin 
- Russia remains India’s cheapest and largest oil supplier.
- India is looking for new low-cost sources like Venezuela and Iran.
- The price of oil from Russia is much lower than other countries.
- Logistics and transportation costs also affect the total cost of oil.
Cheapest Oil India: Amidst rising global tensions and fluctuating fuel prices, India’s crude oil procurement strategy has become more important than ever. Global trade routes are changing due to supply disruptions and restrictions. In such a situation, India is actively importing oil from many countries. Let us know which country is at the forefront in terms of cheapest source.
India’s most affordable oil supplier
At present, Russia is India’s largest and cheapest supplier of crude oil. India is importing oil from Russia at the rate of about $94 per barrel. This is much lower than other global suppliers. Russia’s share in India’s total imports has been between 31% to 41%.
However, after the Ukraine war, Russia initially offered a huge discount of up to $35 per barrel. However, due to geopolitical pressure and sanctions, this discount has now reduced to just $2 to $3 per barrel.
Venezuela and Iran
India is looking for new low-cost options like Venezuela and Iran. Venezuela has re-emerged as a supplier after the US eased sanctions. Similarly, Iran has restarted the supply of oil to India after almost 7 years.
traditional supplier
Apart from concessional oil sources, India also continues to import oil from countries like America, Saudi Arabia, Iraq and United Arab Emirates. Of these, America is the most expensive supplier. Saudi Arabia, Iraq and UAE remain major suppliers due to their reliability. But their prices are usually higher compared to Russia.
Logistics and transportation costs
The role of transportation in the total cost is very important. It takes only three days for oil from Saudi Arabia to reach India. Along with this, its freight cost is also less. This makes it a decent option despite the base price being high. In comparison, Russian oil takes about 15 days to reach. Along with this, the consignment coming from USA may take 45 to 50 days.
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