India's Oil Import Cost to Surge Amid US Tariffs and EU Sanctions
India faces a potential increase of $9-11 billion in its annual oil import costs due to US-imposed tariffs and European sanctions. This threatens India's reliance on discounted Russian crude, which has reduced costs and supported energy stability. Analysts foresee significant risks to profitability and market flexibility for refineries.
- Country:
- India
India is bracing for a substantial rise in its annual oil import bill, potentially ranging between $9-11 billion, analysts warn. This follows the twin threats of US tariffs and European sanctions that could limit India's access to discounted Russian crude.
Historically reliant on Russian oil to slash import costs and stabilize fuel prices, India now faces heightened geopolitical and financial risks. The discounted Russian crude once constituted a small fraction but now makes up a significant portion of India's imports.
Analysts argue the US tariff impositions will impact India's refining operations and threaten market competitiveness. With global dynamics changing, India's refiners are exploring alternative oil sources, yet challenges remain in maintaining profitability.
(With inputs from agencies.)
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