India to Save $3 Billion Annually with Venezuelan Oil Imports: SBI Report

India has reached an understanding with the United States on a trade deal and is now preparing to purchase crude oil from Venezuela. According to an SBI Research report, this move could help the country save nearly $3 billion annually (approximately ₹27,000 crore). The report states that diverting crude oil imports from Russia to Venezuela could significantly reduce India’s overall import costs.

As per SBI Research, if India is able to secure a discount of $10–12 per barrel on Venezuelan crude, the deal would prove financially beneficial. Even after accounting for transportation and other associated expenses, India’s annual crude oil import bill could decline by around $3 billion. The report notes that Venezuelan crude is currently trading at approximately $51 per barrel.

However, analysts point out that India will need to carefully evaluate several factors before shifting its crude purchases from Russia to Venezuela. Key considerations include the level of discount offered, transportation costs, shipping time and insurance expenses. Geographically, Venezuela is much farther from India and crude shipments from there take nearly five times longer than imports from West Asian countries and almost twice as long as shipments from Russia, potentially adding to logistical costs. At the same time, experts caution that discounted Russian crude may not be available in the long term, especially if the Ukraine conflict de-escalates. In this context, India’s growing interest in Venezuelan crude purchases has gained strategic significance.