India's crude import bill jumps 60% as Hormuz freight rates quadruple
This digest was compiled by AI from multiple sources — links to the originals are below.
India's crude oil import bill surged 60% in the April-June quarter from a year earlier as freight rates from the Persian Gulf to India quadrupled after Iran closed the Strait of Hormuz on February 28. War-risk insurance for a single Hormuz voyage jumped to as much as $10 million from $250,000 before the war. The cost of shipping crude from Ras Tanura to India rose 411% to $4.34 a barrel in August.
Key Facts
- Freight rates for a VLCC from Ras Tanura, Saudi Arabia, to India surged 411% to $4.34 a barrel in August from $0.85 per barrel before the war.
- War-risk insurance for a single Strait of Hormuz voyage rose to as much as $10 million from $250,000 before the war.
- India's crude oil import bill was 41% higher in July compared to a year earlier, following a 60% rise in the April-June quarter.
- Brent crude prices have risen about 25% since the Iran war began, with spikes above $100 per barrel on several occasions.
- The Corpus Christi-India freight rate jumped 150% to $15.86 a barrel from $6.35 per barrel pre-war.
Freight Rate Surge
The freight rate for shipping crude on a very large crude carrier (VLCC) from Ras Tanura, Saudi Arabia, to India surged by 411% to $4.34 a barrel in August, from $0.85 per barrel before the war, according to data compiled by Indian outlet Financial Express. The cost to transport crude oil from Russia's Ust-Luga port on the Baltic Sea on Suezmax tankers more than doubled to $19.90 a barrel from $8.40 per barrel in February. The Corpus Christi-India freight rates jumped by 150% to $15.86 a barrel from $6.35 a barrel pre-war.
Insurance and Import Costs
War-risk insurance jumped from $250,000 for a Hormuz voyage before the war to up to $10 million for a single passage through the chokepoint now. India paid 60% more for crude oil imports in the April-June quarter compared to the same period last year, as the surge in oil prices couldn't offset slightly lower import volumes. The rise continued into the beginning of the third quarter, with the July import bill 41% higher from a year earlier.
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India's crude import bill jumps 60% as Hormuz freight rates quadruple
