Russia grabs 37% of India’s total oil import bill in April

Russian crude carved out its largest footprint in India’s oil mix in nearly a year this April, amid persistent disruptions to traditional Gulf shipping routes. Russia’s share of India’s crude basket climbed to an 11-month high of 37.7% by value, Hindu Businessline reports. India imported nearly 6.7 mn tons of Russian crude in April, recording a 27% increase.

The increased dependence came with a significantly higher check. India purchased Russian barrels at a premium of USD 77.8 per ton compared to the average prices paid to other suppliers. In March, the premium on Russian barrels was USD 14.8/ton, implying a 425% surge in April, according to Hindu Businessline’s calculations. India’s overall oil import bill surged 61.3% m-o-m to USD 15.4 bn, with Russia pocketing USD 5.8 bn in a single month.

Why it matters: The war is actively preventing Gulf national oil companies from capturing high-margin spot demand from their closest and biggest consumer market. Despite their willingness to pay hefty premiums, Indian refiners continue to favor Russian barrels as they are less prone to supply disruptions and shipping constraints.

Another LPG price hike

India’s state-run fuel retailers have increased domestic liquefied petroleum gas (LPG) cylinder prices by 3.2%, as per Indian Oil Corporation. With 54% of India’s LPG moving through the Strait of Hormuz, this extends the impact of the energy crisis to households after a series of hikes in transport and commercial fuel prices. An LPG cylinder has become 10.4% costlier since the war started.

“Despite the increase, Indian households continue to pay among the lowest cooking-gas prices globally. Domestic LPG prices remain below those in neighboring countries and well under levels seen in advanced economies, such as the US, Australia, and Canada,” according to a Petroleum Ministry press release. The widening gap imposes a heavy burden on state-run fuel retailers, with cumulative under-recoveries on domestic LPG estimated at INR 600 bn (USD 6.3 bn) in FY 2026.

Why it matters: The subsidy burden has risen sharply as Saudi Contract Prices for LPG have climbed by about 46% since February. The actual cost of supplying a domestic LPG cylinder has risen above INR 1.6k, implying an under-recovery of roughly INR 700 per cylinder even after the latest hike. This follows multiple increases in gasoline, diesel, compressed natural gas, and commercial LPG prices over recent weeks.