So far in April, the average price of the Indian basket of crude oil has dropped to $68.34 per barrel, a 47-month low. According to data from the Petroleum Planning and Analysis Cell (PPAC), this represents a 5.6% decline from March’s $72.47 per barrel and the lowest level since May 2021, when world prices fell during the economic instability brought on by the Covid-19 outbreak.
In 2023-24, the ratio of sour grades, such as Oman and Dubai, reached their highest levels in relation to sweet Brent grades in the basket, government data shows. The Indian crude basket is a derived blend comprising sour grade (Oman and Dubai average) and sweet grade (Brent Dated) crude oil, processed in domestic refineries, with the current ratio standing at 78.50:21.50.
Last year, the Parliamentary Standing Committee on Petroleum underscored the need to diversify India’s crude oil imports by sourcing a wider range of grades, with the aim of bringing down the cost of the Indian basket. The price remains elevated in part because Middle East crude typically commands a higher rate due to the so-called Asian premium — an additional charge imposed by the Organization of the Petroleum Exporting Countries (Opec) on sales to Asian nations over and above the actual selling price, the standing committee noted.
However, the petroleum ministry maintained that the selection of crude oil grades for import is driven by the technical and economic competitiveness of each option.
When evaluating domestic pricing concerns, the government keeps a careful eye on the Indian crude basket, which is a crucial indicator of import prices. Because the basket price has not yet taken into account the substantial amounts of Russian crude that India has been buying since the start of the conflict in Ukraine, several industry insiders have argued for a change in the method it is determined. With a daily delivery of 1.96 million barrels (mbpd), Russia emerged as India’s top supplier of crude oil in May 2023. With 1.66 mbpd as of March 2025, it remains the top-ranked inbound shipment, according to energy cargo tracker Vortexa.
