India Faces New Economic Storm! Oil Tanker Rates EXPLODE, Sending Import Costs Soaring!
Energy
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Updated on 13th November 2025, 10:48 PM
Author
Abhay Singh | Whalesbook News Team
Crux:
Rising global oil tanker rates are a major concern for India, which imports nearly 88% of its oil and 51% of its gas. Following US sanctions that prevented India from buying cheaper Russian crude, the increased cost of shipping oil is expected to significantly raise import expenses. Shipping a Very Large Crude Carrier (VLCC) from Saudi Arabia to China cost around $87,000 per day in September, a rate that adds pressure to India's energy security and economy.
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Detailed Coverage:
India is facing a dual challenge in its energy imports. Firstly, United States sanctions imposed on Moscow-based oil majors Lukoil and Rosneft have led India to bypass opportunities to purchase cheaper Russian crude oil. Secondly, and compounding the issue, global oil tanker rates have begun to surge again. This development is particularly alarming for India, a nation heavily reliant on imports, sourcing approximately 88% of its oil and 51% of its natural gas needs from abroad.
For context, the cost to ship crude oil using a Very Large Crude Carrier (VLCC) from Saudi Arabia to China stood at approximately USD 87,000 per day in September. Such escalating shipping expenses directly translate into higher overall import bills for India. This can fuel inflationary pressures across the economy, potentially leading to increased fuel prices for consumers and higher operational costs for industries.
Impact: This news has a significant impact on the Indian stock market and economy. Rising import costs can lead to increased inflation, pressure on the Indian Rupee, and potentially wider fiscal deficits. Companies in the energy sector and those reliant on imported raw materials will face higher costs, impacting their profitability. Overall economic growth could be dampened. Impact Rating: 8/10
Difficult terms: Crude Oil: This refers to unrefined petroleum as it occurs naturally in the earth, from which all other petroleum products are derived. VLCC (Very Large Crude Carrier): A very large oil tanker, designed to carry crude oil in bulk across long distances. They are among the largest ships in the world. Sanctions: Penalties or restrictions imposed by one country or group of countries on another country, typically for political or security reasons, often involving trade and financial restrictions.