In the fiscal year 2023/24, Russia maintained its position as India’s leading oil supplier, marking the second consecutive year it has held this spot.
The country’s dominance in the Indian market has notably diminished the presence of Middle Eastern and OPEC oil producers, bringing their market shares to unprecedented lows, according to ship tracking data from industry sources.
The surge in Russian oil imports by India is largely attributed to the discounts offered by Moscow following the imposition of sanctions by Western nations.
These sanctions were a response to Russia’s military actions in Ukraine. Despite these international penalties, which aim to cut off funding for the war by reducing Moscow’s oil revenue, India has not wavered in its purchasing of Russian oil.
Russia, while being a part of the Organization of Petroleum Exporting Countries (OPEC) alliance, has significantly encroached upon the market shares of traditional OPEC suppliers in the Middle East within the Indian market.
Statistics reveal that Russian oil made up approximately 35% of India’s total crude imports, which average 4.7 million barrels per day.
This is a significant increase from the 22% recorded in the previous year.
The detailed data further highlights that India’s imports from Russia surged by 57% to 1.64 million barrels per day in 2023/2024.
Consequently, the collective oil imports from Russia, Kazakhstan, and Azerbaijan—members of the Commonwealth of Independent States (CIS)—rose to 39% from 26% in the prior year.
Meanwhile, the share of oil India imported from Middle Eastern countries dropped to a record low of 46%, down from 55%.
Despite these shifts, Iraq retained its position as the second-largest oil supplier to India, followed by Saudi Arabia for the same fiscal year.
Additionally, for the first time, India’s oil imports were evenly split between OPEC and non-OPEC countries.
The decline in Saudi oil imports can be linked to the higher official selling prices maintained by Saudi Aramco throughout most of the year.
Similarly, a sharp decrease in oil imports from Kuwait was noted, primarily because the producer redirected its crude to service a new domestic refinery.