Bargain hunt in oil market helped India save money in 2020 too

In July, Russia became India’s second-largest oil supplier, relegating Saudi Arabia to the third spot. Although Riyadh won back its position in August, Russia remains the third-largest oil supplier for India, Reuters reported, quoting trade data.

Data sourced from the commerce department showed that during April-July, India’s mineral oil imports from Russia soared over eight times to $11. 2 billion, compared with $1. 3 billion in the corresponding period last year. Since March, when India stepped up imports from Russia, imports have topped $12 billion, against just a shade over $1. 5 billion last year. Around $7 billon of these imports took place in June and July.

To put things in perspective, refiners buy oil and not the government. But cheaper oil has a positive impact on macroeconomic parameters of the economy.