India's share of OPEC crude fell to a 22-year low last financial year

Mumbai: The share of crude oil of the Organization of the Petroleum Exporting Countries (OPEC) in the Indian market fell to a 22-year low last financial year. Government sources said that due to increase in India's crude oil import from Russia, India's purchase of crude oil from OPEC member countries has decreased.

The share of OPEC crude oil in the Indian market is expected to decline in the current financial year as well. The share of OPEC, especially the Middle East and Africa, in India's crude oil market in the financial year 2021-22 fell to 59 per cent in the last financial year, which was 72 per cent.

For the first time, Russia overtook Iraq as the largest supplier of crude oil to India. Due to this, Saudi Arabia fell to the third position last financial year.

India, which used to buy less crude oil from Russia due to higher freight costs, has started buying more after Russia's invasion of Ukraine.

Russia has been supplying cheap crude oil to India since several countries, including Europe, the US, imposed sanctions on Russia due to the invasion, which has led to an increase in India's purchases from it, government sources said.

Last financial year, India imported 1.6 lakh barrels of crude oil per day from Russia. Which was 23 percent of India's daily crude oil import.

Sources also added that OPEC and its allies' decision to implement production cuts from May will further reduce their share of crude oil in the Indian market. India is the third largest importer of crude oil in the world.

In the financial year 2022-23, India's crude oil imports increased by 9 percent overall. Imports were increased by government refineries to meet domestic demand.