India cuts Saudi oil imports by 8 percent

India imported 8 percent less oil from Saudi Arabia in the fiscal year 2014/15 (April-March) compared to FY 2013/14, while increasing purchases from Africa and South America. The move can be seen as part of an effort by India to diversify its oil supply away from the Middle East, as the region faces rising political uncertainty.

While remaining India’s leading supplier, crude imports from Saudi Arabia fell to 34.99 million tonnes in FY 2014/15, compared to 38.18 million tonnes in FY 2013/14, the minister of state for petroleum and natural gas has said on Monday.

Imports from Kuwait dropped to 17.85 million tonnes, down from 20.35 million tonnes, while shipments from Iran and Iraq stayed steady, at 10.95 million tonnes and 24.51 million tonnes, respectively. The only country to see a gain was the UAE, which saw an increase of 15 percent to 16.11 million tonnes.

In total, India imported 189.44 million tonnes of oil in FY 2014/15, representing more than 80 percent of its consumption. Overall, oil imports from the Middle East declined by more than 5 percent to 109.88 million tonnes, marking a 14-year low, while rising more than 10 percent from Africa and South America to reach a record high. India bought 24.40 million tonnes of oil from Venezuela, its third-largest supplier, in FY 2014-15, a 13-percent rise from FY 2013-14.

For more news and features on India, click here.