India’s Oil Suppliers

India is not overly dependent on Saudi Arabia for its oil imports, for the following reasons:

1. India has diversified its oil sources in recent years. According to the Indian Oil Minister, India used to buy oil from 27 sources, but now buys from 39 different sources, including Saudi Arabia, Iraq, Russia, the UAE, and others.3
2. While Saudi Arabia is still a major supplier, India’s imports of Saudi oil have declined significantly in recent months. In September 2023, India’s Saudi oil imports slumped to a multi-year low of around 500,000 barrels per day, likely due to maintenance shutdowns at a major Indian refinery.
3. India has been buying more oil from Russia, which has become India’s largest crude oil supplier, accounting for about 40% of India’s crude imports. India has been able to secure discounted Russian oil amid the Ukraine conflict.
4. The Indian Oil Minister stated that India “doesn’t get over dependent on anyone” for its oil needs, indicating a conscious effort to avoid over-reliance on any single supplier.3
5. India is the world’s third-largest energy importer, purchasing over 80% of its crude oil from international markets. This diversification helps reduce dependence on any one country like Saudi Arabia.3

In summary, while Saudi Arabia remains an important oil supplier to India, India has successfully diversified its oil sources in recent years and is not overly dependent on Saudi Arabia for its crude oil needs. India is intentionally avoiding over-reliance on any single oil supplier.