India’s crude oil imports rose to a record 23.32 million metric tonnes in May, up 9.8% from April, government data showed on Monday. The surge underscores rising energy demand in India, the world’s third-largest oil importer and consumer.
On a year-on-year basis, crude imports increased 5.9% from 22.03 million tonnes in May 2024, according to preliminary data from the Petroleum Planning and Analysis Cell (PPAC).
Rising demand and stockpiling amid geopolitical tensions
India’s fuel demand climbed to 21.32 million tonnes in May, its highest in over a year. Analysts say this demand, coupled with geopolitical risks, may be prompting refiners to build stockpiles.
“The strong m/m growth of oil imports for India in May suggests a resilient economy, and the import growth of oil may continue to rise due to stockpiling purposes, as we may see higher oil prices due to rising geopolitical risk premiums,” said Kelvin Wong, senior market analyst, Asia Pacific, at OANDA.
Oil minister Hardeep Singh Puri said on Sunday that India would take measures to safeguard domestic fuel supplies, following U.S. strikes on Iranian nuclear facilities that risk disrupting Middle Eastern oil and gas flows.
Russian oil share dips, product exports rise
Russian oil’s share in India’s imports declined slightly in May, with refiners reducing purchases by 15.7% to 1.7 million barrels per day, trade and industry sources said.
Meanwhile, crude product imports dropped by 3.9% year-on-year to 4.20 million tonnes, while product exports rose over 7% to 5.63 million tonnes. Diesel and petrol led the export growth, followed by jet fuel.
