India could spend up to $3.7 billion more annually to replace Russian oil
Replacing one million barrels per day of Russian crude may add $1.8-$3.7 billion to India's yearly oil bill, analysts say.
If India substitutes one million barrels per day of Russian oil with pricier alternatives, the extra cost could range from $1.8 to $3.7 billion annually, according to a UAE-based analyst. Russia accounted for roughly 42 % of India's crude imports in August, and replacing that volume would be challenging due to limited availability of comparable grades. Senior Icra executive Prashant Vasisht warned that a rapid shift could risk fuel shortages, so diversification is expected over a full retreat.
Potential sources include Guyana, Nigeria, the United States and Brazil, while West Asian crudes may become a longer-term fallback because of lower freight costs. However, Gulf supplies remain tight, with the East-West pipeline back in service but loading at Yanbu still halted. The analysis underscores that higher costs and supply constraints could hit India during its peak fuel-demand season.
Why it matters
Higher oil costs and supply gaps could strain India's energy security and affect global oil markets.
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