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India’s oil basket price at 47-month low of $68.34 a barrel in April
The average price of the Indian basket of crude oil has fallen to a 47-month low of $68.34 per barrel so far in April. This marks a 5.6 per cent drop from March’s $72.47 per barrel, and is the lowest level since May 2021, when global prices plummeted amid the economic turmoil triggered by the Covid-19 pandemic, according to data from the Petroleum Planning and Analysis Cell (PPAC).
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.
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