India’s Crude Oil Imports Under Pressure: Saudi Supply Halt, Russia Refinery Disruptions and Higher Freight Costs
Attacks on Saudi Arabia and Russia have increased pressure on India's crude oil supply. Rising freight rates and oil prices have made alternative sources more expensive, leading to a significant increase in the import bill.
Assaults on the East-West pipeline of Saudi Arabia and Russia’s key refineries have added another layer of pressure on India’s crude oil imports.
Recently, India’s crude oil imports have comprised more than 45-50 percent of total oil imports from both nations. Before the Strait of Hormuz became inaccessible, Saudi Arabia used to sell its oil via an East-West pipeline.
After the pipeline attack, Saudi Arabia’s oil corporation Aramco has decided to suspend oil supply to Indian refineries for a period of time. Prior to the outbreak of war, Saudi Arabia was providing around nine percent of India's total oil requirements.