India’s crude oil imports fell 8.7 per cent in July to 18.56 million metric tons month-on-month, the lowest level since February 2024, government data showed on Monday.
India is the world’s third-biggest oil importer and consumer, making this data a key indicator of the country’s oil demand.
On a yearly basis, crude oil imports fell 4.3 per cent from 19.40 million tons in July 2024, according to data from the Petroleum Planning and Analysis Cell.
Meanwhile, imports of crude oil products fell by about 12.8 per cent on a yearly basis to 4.31 million tons in July, while product exports declined 2.1 per cent to 5.02 million tons.
India’s fuel consumption in July fell 4.3 per cent month-on-month to 19.43 million tons, according to data released by the oil ministry.
Indian goods face additional U.S. tariffs of up to 50 per cent effective August 27. Washington has already imposed 25 per cent duties on shipments from India, higher than those on several other major trading partners. The additional tariffs are being imposed for India’s purchase of Russian oil.
India will address its future trade relationship with the United States with a “very open mind”, Trade Minister Piyush Goyal said on Friday, just days before heavy extra U.S. tariffs are due to hit imports from the country.
India’s state-run refiners Indian Oil and Bharat Petroleum have bought Russian oil for September and October delivery, resuming purchases after discounts widened, two company officials aware of the matter said on Wednesday.
Indian refiner Nayara Energy, backed by Russia and under European Union sanctions, is relying on a dark fleet to import oil and transport refined fuels, according to shipping reports and LSEG flows.
“I guess the U.S. tariff threat on Russian oil purchases likely weighed on Indian oil imports last month,” said UBS commodity analyst Giovanni Staunovo.
