About Brent Crude · India
India is the world's third-largest oil importer, consuming over 5 million barrels per day. India primarily imports Brent-linked crude from the Middle East, Russia (discounted Urals), and West Africa. The INR oil price is calculated from live Brent spot and the USD/INR exchange rate.
India's retail fuel prices (petrol, diesel) are regulated and do not directly track crude oil in real time. The government adjusts retail prices periodically via the OMC (Oil Marketing Companies — IOC, HPCL, BPCL) pricing mechanism.
Frequently Asked Questions
Why does India import most of its oil? +
India has limited domestic crude reserves meeting only about 15% of its needs. The remaining 85%+ is imported, primarily from Saudi Arabia, Iraq, UAE, and increasingly Russia at discounted prices.
How does the INR/USD rate affect India oil prices? +
Since oil is globally priced in USD, a weaker rupee raises India's import cost directly. A 1% INR depreciation raises the landed cost of oil by approximately 1%, adding inflationary pressure.
What are Indian petrol and diesel prices based on? +
Retail prices in India are set by OMCs (IOC, HPCL, BPCL) and include basic excise duty, state VAT (20-40%), dealer commission, and OMC margin. The crude price is only one component.
Does India buy Russian oil? +
Yes. Since 2022, India has significantly increased discounted Russian Urals crude purchases, often at $10-20/bbl below Brent, reducing its import bill substantially.
Oil Market Analysis - India (March 2026)
India imports approximately 85% of its crude oil requirements, making it highly sensitive to global price movements. The Indian crude oil basket - a weighted average of Oman, Dubai, and Brent grades - determines domestic pricing. In 2026, India has diversified its import sources, with Russian Urals crude accounting for a growing share of purchases at discounted rates. Retail petrol and diesel prices in India are revised daily under the dynamic pricing mechanism, though state and central taxes account for nearly 50% of the pump price.