Rising shipping and insurance costs for Middle Eastern crude push India’s import bill to unprecedented levels amid regional supply disruptions.
India’s crude oil import costs have surged due to quadrupling freight rates and elevated insurance premiums for shipments through the Strait of Hormuz. Benchmark crude prices have also risen, compounding the financial strain on India’s energy imports from the Middle East.
Freight rates on the key Ras Tanura route have hit record highs, while insurance costs for a single voyage have soared. Prior to the Iran conflict, shipping expenses were significantly lower, with no comparable spikes in recent years.
The increased costs reflect broader supply chain disruptions in the region, forcing India to pay premium prices for crude from its nearest suppliers.