• India’s crude oil imports are set to become expensive as U.S. ends waiver on crude import from Iran
• India will be hit by the Trump administration’s decision to end waivers that allowed the import of crude oil from Iran without facing U.S. sanctions. Iran has been among India’s top and most preferred sources of crude oil. Crude from Iran came with discounts on shipping, insurance, and freight and longer credit period. Crude from the U.S., an alternative exporter, comes at a hefty price.

BACKGROUND:

• Iran has been one of India’s top-suppliers of crude oil over the years. In 2018-19, 10.9% of India’s crude demands were met by imports from Iran. While Iraq is India’s top-supplier of crude oil since 2017-18, these has been a sudden jump of 288% in imports from the U.S. since 2017-19. The chart shows India’s top suppliers of crude oil and their contribution over the years.