At what price is India buying oil globally?:Russian crude still cheapest despite sales at premium rates

Russia currently sells crude oil at $5 to $6 premium to global benchmark Brent crude whose prices trade at around $106 per barrel. Despite this, Russian crude is still comparatively cheapest as compared to that of India’s other oil partners. India’s quest for cheap oil has recently taken a hit due to supply constraints caused by the West Asia conflict. Cheap crude is necessary for the government to keep the country’s petrol pumps running and prices at the grocery store stable. At what price India buys crude oil? As of early April 2026, the global oil market is under significant pressure due to heightened tensions in West Asia. While international benchmarks like Brent Crude have become hotter by over 50% to $106 per barrel (currently) from around $70 per barrel before the Iran war had kicked-off on Saturday, 28 February, 2026. The actual price India pays is reflected in the Crude Oil Indian Basket. As of 1 April 2026, the average price was $120.84 per barrel, according to the Ministry of Petroleum and Natural Gas’ Petroleum Planning and Analysis Cell (PPAC). In late March 2026, this basket price was recorded at approximately $121.15 per barrel, though it has fluctuated wildly between $70 and $120 over the last few months. This basket is the average price of different types of oil India imports. When Covid-19 pandemic had hit the world, the Brent crude prices averaged $42 per barrel in 2020 . During that the financial year 2020-21, India imported oil at an average price of $44.82 per barrel. While, during Russia invasion of Ukraine, oil prices had jumped to an average of more than $100 per barrel in 2022. The average price of India’s import of crude oil in financial year 2023 stood at $93.15 per barrel. While, due to the Iran war, in over one month, oil prices have jumped over 50% to $107 per barrel. As of 1 April, 2026, the average import price of crude oil has jumped to $120.84 per barrel. Where is the cheapest oil available in the world right now? Despite international sanctions and complex trade negotiations, Russian Urals crude remains the most discounted major oil grade available to Indian refiners. Currently, among the countries from which India buys, Russia still remains the cheapest territory despite the fact that the price at which India bought in March 2026 was way higher than that in December 2025. Even with the discount shrinking compared to previous years, Russian oil is often priced significantly lower than the West Asia alternatives. Previously, India used to buy crude oil from Russia at a discount of $10 per barrel. But now, the Narendra Modi-led government has been able to buy the same Urals crude at $5 to $6 per barrel premium. -ONGC employee
India’s shopping list: Who are the main suppliers? India doesn’t put all its eggs in one basket. It buys oil from over 40 countries to ensure that if one supply line is cut, the country doesn’t go dry. The country meets over 80% consumptions through imports. Russia: Currently a top supplier. India again ramped up purchases once US waived sanctions following the Strait of Hormuz crisis. Iraq: This country has been one of India’s most reliable partners. Saudi Arabia: Known for high-quality ‘Saudi Light’ oil, though often sold at a premium compared to Russian barrels. United Arab Emirates (UAE): A key partner providing stability and proximity, which helps keep shipping costs lower. United States: India has recently increased imports from the US to diversify away from the volatile West Asia. But American crude, produced from shells, is often expensive due to longer shipping trajectory. How is Indian Crude Basket calculated? To calculate the average price of Indian Crude Oil Basket, the government looks at two main types: Sour Grade (Oman Dubai Average): This is a heavier and dirtier oil that requires more refining but is usually cheaper. It makes up a large portion of the basket. Sweet Grade (Brent Dated): This is a lighter and cleaner oil that is easier to process and serves as the global gold standard for pricing. The ratio between these two is roughly 61% sour and 39% sweet. How does India’s Crude Oil Basket price impact common man? When the Indian basket price goes up, it’s a double whammy for the economy. First, it may make petrol and diesel more expensive. Second, since almost everything—from tomatoes to T-shirts—is transported using fuel, a rise in oil prices usually leads to inflation, making everyday life more expensive for everyone. Learning from the situation in the Strait of Hormuz and West Asia, India will continue to find cheap barrels to keep its economy moving forward in 2026.