Key facts
- Indian crude basket hit $123.29 per barrel last week.
- Indian oil marketing companies face losses on diesel and gasoline.
- India's crude oil import bill rose to $90.6 billion in Q3.
- Middle East oil imports jumped 32% in September to 2.8 million barrels per day.
India's oil buyers are facing significant financial pressure as the Indian crude basket reached $123.29 per barrel last week, nearing 2012 levels. This surge, combined with a weaker rupee, has increased costs for Indian oil marketing companies by 86%. The Financial Express reported that Indian state refiners are now losing money on both diesel and gasoline margins, despite price increases. The country's crude oil import bill climbed to $90.6 billion in the third quarter, an increase of nearly $29 billion from the previous year, although import volumes rose by less than 1% to 122.7 million tons. Imports from the Middle East rebounded in September to 2.8 million barrels per day, the highest since February, while competition from China for Russian oil led to declining imports from Russia.