India has managed to reduce its oil spending in recent months, even though it’s been buying more crude oil from abroad. How is this possible? The answer lies in falling global crude oil prices.
Between September and November, India’s oil import costs dropped by 9% compared to the same period last year, totaling $31.2 billion. At the same time, the amount of oil imported increased by 4.4%, reaching 57.2 million tonnes, according to the Petroleum Ministry's data.
A Surprising Shift in Trends
This trend marks a big change from the first five months of the financial year (April to August), when India was spending 14.2% more on oil imports than the previous year, even though the volume of imports grew only slightly by 2.6%.
So, what changed? The drop in oil prices globally has been a game-changer. In November alone, the cost of imports fell by 13% compared to the same month last year. Similar trends were seen in October (10.9% drop) and September (2.8% drop).
However, th...
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