India's average oil import cost is nearly $5/bbl higher versus Dubai crude in FY2026 so far

ANI New Delhi

India's average crude import cost has increased sharply versus the Dubai benchmark, in FY2026 so far, even as the share of Russian crude in the country's oil basket has declined, said Kotak Institutional Equities in its latest report.

The brokerage noted that with alternate crudes likely to be more expensive, premiums could also remain elevated and impact GRMs for refiners.

According to Kotak, India's average oil import cost is nearly USD 5/bbl higher versus Dubai crude in FY2026 so far, the steepest premium recorded in recent years.

The report attributed the rise, to reduced discounts on Russian crudes, rising premiums from other countries, lower Venezuelan imports and higher US imports.

Russia's share in India's crude imports has slipped to "34 per cent in FY2026 so far (36 per cent in FY2024 and FY2025)," Kotak said, citing Commerce Ministry data.

While Russia continues to be India's top crude supplier, the shift signals a gradual rebalancing of sources amid Western pressure.

The report added that "Russia's share in India's crude import was negligible until FY2022, but it's the largest source of crude for the past three years." India's refiners began significantly increasing purchases from Moscow after sanctions on Russian oil following the Ukraine conflict in early 2022, taking advantage of deep discounts.