India will import crude oil from any supplier offering the lowest prices and most suitable terms, according to government sources.
This policy shift emphasizes national interest and supply security over geopolitical pressures. As global oil benchmarks approached USD 90 per barrel [5], the Indian government is prioritizing affordability to prevent domestic economic instability.
Government sources said India will continue importing crude oil from wherever it is cheaper and suitable, prioritizing supply security and affordability amid global uncertainty.
The strategy comes as the state manages the financial burden of fuel pricing. On May 12, the oil minister said India will need to assess how long state-run fuel retailers can sustain losses from selling transport fuels below market prices.
To curb a potential spike in inflation and protect consumers, the government slashed excise duties on petrol and diesel on March 27, 2026 [6]. A government spokesperson said the cuts were implemented to shield the public from volatility.
Retail prices remain varied across major cities. In Delhi, petrol is priced at Rs 97.77 per litre [1]. In Mumbai, the price is Rs 106.68 per litre [3], while Chennai lists petrol at Rs 103.67 per litre [4]. Kolkata has the highest rate among these cities at Rs 108.74 per litre [2].
These pricing disparities reflect the complex logistics of domestic distribution. The government continues to monitor international benchmarks to determine when further fiscal adjustments or import shifts are necessary to maintain stability.
“India will continue importing crude oil from wherever it is cheaper and suitable”
India's decision to decouple its energy procurement from geopolitical alliances signals a pragmatic approach to energy security. By sourcing oil based strictly on cost and suitability, New Delhi aims to insulate its economy from global price shocks and inflation, though this may create diplomatic tension with nations attempting to enforce energy sanctions or trade blocs.
