India has cut crude oil imports from its top supplier Saudi Arabia by over 8 per cent in 2014-15 as it raised purchases from Africa and Latin America in an apparent bid to cut reliance on volatile Middle-East.

Crude oil import from Saudia Arabia was cut to 34.99 million tonnes in the year to March 31, 2015 from 38.18 MT in 2013-14, Oil Minister Dharmendra Pradhan said today.

While imports from sanction-hit Iran were almost flat at 10.95 MT, shipments from Kuwait fell to 17.85 MT from 20.35 MT. Imports from Iraq were almost flat at 24.51 MT but the same from UAE rose 15 per cent to 16.11 MT.

Overall, imports from Middle East fell by over 5 per cent to 109.88 MT, he said in a written reply to a question in Lok Sabha here. Crude oil imports from Africa and South America rose 10 per cent each as Indian refiners bought more heavier but cheaper grade oil, he said.

Indian refineries have consistently reduced imports from traditional markets like Saudi Arabia and stepped up purchases from newer geographies like Mexico and Venezuela as imports have become viable due to availability of cheaper variants and softening of shipping cost.

India imported 189.44 MT of crude oil in 2014-15, almost unchanged from the previous fiscal, to meet over 80 per cent of its oil needs. Saudi Arabia was the top supplier with 34.99 MT with Iraq being number two.

Venezuela was a very close third with 24.40 MT of oil supplies, 13 per cent higher than 2013-14. With 17.82 MT of crude oil supplies, Nigeria was tied with Kuwait for the fourth spot.

Pradhan said imports from Africa rose to 33.05 million tonnes in 2014-15 from 30.39 MT in the previous year. They went up from South America too, to 34.46 MT from 31.73 MT in 2013-14. Mexico supplied 5.06 MT of crude oil in 2014-15, marginally higher than 4.94 MT a year ago.

Pradhan said imports from Iran, which was once the second biggest crude oil supplier to India, was 10.95 MT, almost unchanged from 11 MT in 2013-14. In 2012-13, India had imported 13.14 MT of crude oil from Iran.

New Delhi has maintained crude oil imports from Iran at 2013-14 level as the US looked to financially choke Tehran to bring it to negotiating table on its controversial nuclear programme.

Pradhan said Prime Minister has set a target for reduction in import dependency in energy by 10 per cent to 67 per cent by 2012-22, from 77 per cent dependency in 2013-14.

“A Committee has been constituted under the Chairmanship of Additional Secretary, Ministry of Petroleum and Natural Gas, to prepare a roadmap in order to achieve the target,” he said.

Source:hellenicshippingnews.com