India Could Save $3 Billion on Fuel Imports by Turning to Venezuelan Crude says SBI Report

As per ANI report, India’s annual fuel import bill could decline by as much as $3 billion if the country shifts a portion of its crude oil sourcing from Russia to Venezuelan heavy crude, according to a new research report by State Bank of India (SBI). 

Potential Cost Savings from Venezuelan Crude 

The SBI report highlights that Venezuelan heavy crude is currently trading at around $51 per barrel. A discount of $10–12 per barrel compared to benchmark prices would be sufficient to make the switch economically neutral for Indian refiners. 

Even after accounting for longer shipping distances and higher logistics costs, the discounted pricing could result in meaningful savings on India’s overall fuel import bill. 

Logistics and Distance Considerations 

Venezuela is geographically farther from India than Russia and Middle Eastern suppliers. Shipping distances from Venezuela are roughly five times those from the Middle East and about twice those from Russia. 

These longer routes increase transportation time, insurance costs, and total landed cost. However, SBI notes that these factors can be offset if Venezuelan crude is offered at sufficiently deep discounts. 

Refining Capability and Crude Blending 

The report also points to India’s strong domestic refining capacity as a key enabler. Indian refiners are capable of processing heavy crude grades and blending different crude varieties based on market conditions. 

Any transition would depend on refinery configurations, blending economics, and potential technological adjustments required to handle Venezuelan heavy crude. 

Read More: India–US Tariff Shift Follows Modi’s Call with Venezuela’s Acting President! 

Strategic Implications for India’s Import Mix 

SBI’s analysis uses a scenario-based approach that maintains historical trends in India’s crude import basket. Under favourable discount conditions, a full shift from Russian crude to Venezuelan crude could lower annual fuel import costs by approximately $3 billion. 

The report cautions that easing geopolitical tensions in Ukraine could reduce the current discounts on Russian crude, potentially narrowing the cost advantage. Still, discounts in the $10–12 per barrel range would keep sourcing decisions economically flexible for Indian buyers. 

Conclusion 

The SBI report suggests that diversifying crude sourcing toward Venezuelan heavy crude could help India reduce its fuel import bill, provided pricing discounts remain attractive. Final decisions will depend on global price movements, logistics costs, and refinery economics. 

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