SEATTLE (Oil Monster): According to leading global analytics provider Kpler, the increasing imports of costlier Middle East crude oil grades are likely to take a hit on India’s oil import bill.
The Middle East grades are currently trading at a premium, at least $3–5 more per barrel, according to the business. The imposition of tariffs on India by the Trump administration over Russian oil imports, along with the effects of EU sanctions, have caused a spike in Middle Eastern crude oil grades' prices.
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Refineries in India, especially state-run refineries, have reportedly cut back on their purchases of Russian oil. Middle Eastern grades are being used to replace these cargoes at the same time. The forthcoming summit between Trump and Putin would be important for India, Kpler noted, because it will have a big effect on the market for crude oil imports into the nation.
The cost of importing crude oil into the nation is probably going to increase dramatically. It should be mentioned that in FY25, the import bill totaled more than $157 billion.
The current negotiations could lead to India agreeing to buy much more gas and oil from the United States. In recent months, the nation has begun importing more U.S. crude. Since May, imports have averaged 225 kbd, about double what they were in the beginning of 2025.
From 4% in FY25 to 8% in April and May of this year, the proportion of U.S. oil in India's crude import volume has doubled.
