US penalty risk on Russian oil may add USD 9-11 bn to India’s import bill

NEW DELHI: (Aug 3) India’s annual oil import bill could rise by USD 9-11 billion if the country is compelled to move away from Russian crude in response to US threats of additional tariffs or penalties on Indian exports, analysts said.

India, the world’s third-largest oil consumer and importer, has reaped significant benefits by swiftly substituting market-priced oil with discounted Russian crude following Western sanctions on Moscow after its invasion of Ukraine in February 2022.

Russian oil, which accounted for less than 0.2 per cent of India’s imports before the war, now makes up 35-40 per cent of the country’s crude intake, helping reduce overall energy import costs, keep retail fuel prices in check, and contain inflation.