India’s Oil Import Price Drops Below $70 for the First Time Since 2021
The average price of India’s crude oil imports fell to below $70 per barrel this month, for the first time since 2021, as international benchmarks plunged amid trade and tariff uncertainty. India, which imports 88% of the crude it consumes, saw its average cost of crude oil imports plunge by 17.87% in April compared to March 2024. The average import cost stood at $69.39 per barrel for the first two weeks of this month—the lowest level since August 2021, Indian outlet Hindustan Times reported on Tuesday. The lower import price could boost purchases by Indian refiners who are sensitive to the price of crude. The lowest crude import cost in nearly four years could also lead to lower prices for gasoline and diesel for Indian consumers, according to Hindustan Times. India last reduced the prices at the pump in March 2024, ahead of the general election last year. Low import bills are very good news for India, the world’s third-largest crude oil importer, which depends on imports for more than 88% of its oil consumption. India’s crude import dependence hit a record high of 88.2% in the April 2024 to February 2025 period and set a record high in the fiscal year ending March 31, 2025, as Indian fuel demand continues to grow while domestic crude production remains flat. The Indian import dependence in the full 2023/2024 fiscal year averaged 87.8%. As import and demand trends have shown in recent months, the 2024/2025 fiscal year will see an even higher – an all-time high – reliance on crude oil imports. Last year, India surpassed China as the world’s largest oil demand driver, amid growing demand for fuel transportation in India and slowing gasoline and diesel demand in China due to the advance of electric vehicles and LNG-fueled trucks in the world’s top crude oil importer. This year was set for another healthy demand growth in India, but the U.S. trade policies with increased tariffs and uncertainties could undermine global trade and economic growth.
Can US India energy bridge work
When it comes to ensuring a stable supply of Liquefied Natural Gas (LNG), India needs to maintain strong diplomatic ties with only the four largest gas suppliers, i.e. US, Qatar, Australia and Russia, said Crown LNG’s CEO Swapan Kataria. Kataria leads a company, which develops, finances, owns and operates LNG terminals in locations exposed to harsh weather conditions. Following his session at the News18 Rising Bharat Summit at Bharat Mandapam, Kataria sat down with Firstpost to speak about Crown LNG’s project at Kakinada Deepsea Port in Andhra Pradesh, energy challenges India is currently facing and how LNG can prove to be a solid bridge between India and the United States. In February this year, Kataria signed a Memorandum of Understanding (MoU) with Indian Gas Exchange (IGE) CEO Rajesh Kumar to set up an LNG terminal in Andhra Pradesh. “The LNG terminal will be set up at an estimated cost of ₹90 billion. The facility is expected to meet the commercial and industrial needs in South India,” Kakinada Member of Parliament T. Uday Srinivas said in a statement at that time.
Back to Russian gas? Trump-wary EU has energy security dilemma
More than three years after Russia’s invasion of Ukraine, Europe’s energy security is fragile. U.S. liquefied natural gas helped to plug the Russian supply gap in Europe during the 2022-2023 energy crisis. But now that President Donald Trump has rocked relationships with Europe established after World War Two, and turned to energy as a bargaining chip in trade negotiations, businesses are wary that reliance on the United States has become another vulnerability. Against this backdrop, executives at major EU firms have begun to say what would have been unthinkable a year ago: that importing some Russian gas, including from Russian state giant Gazprom, could be a good idea.
Gas meters must be verified before use in commerce under new draft rules: Govt
The Department of Consumer Affairs has proposed draft rules mandating the verification, testing and stamping of all gas meters used for domestic, commercial and industrial purposes before they are put to use, in a move aimed at promoting accuracy in gas measurement across India’s trade and commerce sectors. According to the draft framed under the Legal Metrology (General) Rules, 2011, re-verification of gas meters in use will also be mandatory to ensure ongoing accuracy and prevent faulty or manipulated usage. The move is intended to strengthen consumer protection, reduce billing disputes and align with global standards. “These rules make it mandatory for all gas meters…to undergo testing, verification and stamping prior to their use in trade and commerce,” the department said in a statement. It added that the step aims to ensure “accuracy, transparency, and reliability in the measurement of gas.” The rules follow extensive consultations with stakeholders, including manufacturers, testing laboratories, city gas distribution companies, and state legal metrology departments. Inputs were incorporated from the Indian Institute of Legal Metrology (IILM), Regional Reference Standard Laboratories (RRSLs), industry experts and Voluntary Consumer Organizations (VCOs). The Bureau of Indian Standards (BIS) was also consulted for technical evaluation.
Govt plans cheap gas lifeline for LNG trucks; aims to revive closed outlets
The government is considering the allocation of cheap, locally produced natural gas to trucks running on liquefied natural gas (LNG) — India’s new gas demand centre and a cleaner alternative to the country’s polluting diesel-based transport — after state-run refiner Indian Oil was forced to shut nearly all its LNG retail outlets due to high costs and a low customer turnout, industry sources told Business Standard. Indian Oil, the largest operator of LNG truck outlets, has shut five of its six outlets for lack of business, with only one in Sriperumbudur, an industrial area outside Chennai, still operational. Another seven-eight outlets are ready but have not started operations due to a shortage of LNG-fuelled trucks, a company official said. The firm hopes to restart the outlets if it can secure adequate refuelling demand, the official added. Indian Oil declined to comment.