India's Oil Import Windfall: Potential Savings Amid Lower Global Crude Prices

India, a major oil importer, could save up to Rs 1.8 lakh crore if global crude prices continue to soften. Despite rising demand and government taxes, upstream earnings and LNG import savings could offset inventory losses for refineries.

India, positioned as the world's third-largest oil importer, is on the cusp of significant savings, projected up to Rs 1.8 lakh crore, driven by the downward trend in global energy prices, according to a report by Icra.

In the fiscal year concluded on March 31, 2025, the nation, fulfilling over 85% of its crude oil needs via imports, expended USD 242.4 billion on foreign crude oil acquisitions. Liquid Natural Gas (LNG) imports, meeting about half of the internal demand, cost an additional USD 15.2 billion.

With the current softening of oil markets, Brent crude fell to its lowest since February 2021, reaching USD 62.4 per barrel amid escalating supplies and wavering demand prospects. Yet, with crude anticipated to remain in the USD 60-70 band, potential savings for both crude and LNG imports loom large.

(With inputs from agencies.)