India's oil basket price at 47-month low of $68.34 a barrel in April

Crude import bill increased by 2.7% in FY25 to $137 billion

The average price of the Indian basket of crude oil has fallen to a 47-month low of $68.34 per barrel so far in April. This marks a 5.6 per cent drop from March’s $72.47 per barrel, and is the lowest level since May 2021, when global prices plummeted amid the economic turmoil triggered by the Covid-19 pandemic, according to data from the Petroleum Planning and Analysis Cell (PPAC).

 

In 2023-24, the ratio of sour grades, such as Oman and Dubai, reached their highest levels in relation to sweet Brent grades in the basket, government data shows. The Indian crude basket is a derived blend comprising sour grade (Oman and Dubai average) and sweet grade (Brent Dated) crude oil, processed in domestic refineries, with the current ratio standing at 78.50:21.50.

 

Last year, the Parliamentary Standing Committee on Petroleum underscored the need to diversify India’s crude oil imports by sourcing a wider range of grades, with the aim of bringing down the cost of the Indian basket. The price remains elevated in part because Middle East crude typically commands a higher rate due to the so-called Asian premium -- an additional charge imposed by the Organization of the Petroleum Exporting Countries (Opec) on sales to Asian nations over and above the actual selling price, the standing committee noted.

 

However, the petroleum ministry maintained that the selection of crude oil grades for import is driven by the technical and economic competitiveness of each option. 

 

The Indian crude basket serves as a key indicator of import prices and is closely monitored by the government when assessing domestic pricing issues. As a result, some industry insiders have called for a revision in the way the basket price is calculated, particularly since it has yet to reflect the significant volumes of Russian crude that India has been importing since the outbreak of the war in Ukraine. In May 2023, Russia became India’s largest crude oil supplier, delivering 1.96 million barrels per day (mbpd). As of March 2025, it continues to lead inbound shipments, with 1.66 mbpd, according to energy cargo tracker Vortexa.

 

Even so, global market conditions are expected to keep the basket price in check over the near term, PPAC officials said. Oil prices took a sharp hit after April 2, when the United States announced retaliatory tariffs against almost all major trading partners. Both the global benchmark Brent crude and the US benchmark WTI fell to four-year lows amid weak industrial demand and fears of oversupply.

 

Later, US President Donald Trump announced a 90-day pause for most nations, excluding China, during which a lower, baseline rate of 10 per cent would apply on a vast number of import items.

 

As of Sunday, Brent crude futures stood at $67.96 per barrel, having edged higher over the past week.

 

The latest figures also show that India’s crude oil import volumes rose by 4.2 per cent to 242.4 million tonnes (mt) in FY25, up from 232.3 mt in FY24. In value terms, the crude import bill increased by 2.7 per cent in FY25 to $137 billion, compared with $133.4 billion the previous year. The combined import bill for crude and petroleum products climbed to $161 billion in FY25, up from $156.3 billion in FY24.

 

The data revealed that India’s crude oil import dependency hit an all-time high of 89.1 per cent in March 2025, up from 88.6 per cent in March 2024. For the full financial year, import dependence stood at 88.2 per cent, rising from 87.8 per cent in FY24.