Insurance market dynamics created additional costs and complications for certain crude sources in India’s 2025 procurement, influencing total acquisition economics. Data shows that US crude imports to India surged by 65.6% to $8.2 billion during April-December 2025, while Russian crude imports contracted by more than 17%, falling from $40 billion to $33.1 billion year-on-year.
December 2025 procurement reflected insurance considerations. Russian crude shipments to India declined by 15.15% to $2.71 billion from $3.2 billion in December 2024, influenced by higher insurance premiums for vessels carrying sanctioned petroleum and limited availability of Western insurance coverage. These insurance costs added to total delivered prices.
Suppliers with standard insurance arrangements maintained competitiveness. Saudi Arabia’s 61% growth to $1.75 billion in December 2025 benefited from conventional marine insurance availability. The United States’ 31% increase to $569.30 million utilized standard shipping insurance. Iraq and the UAE, supplying $2.37 billion and $1.65 billion respectively, operated with normal insurance market access.
Insurance market impacts intensified following the US imposition of a 25% punitive tariff on Indian goods on August 27, 2025. This policy indirectly affected insurance markets by increasing risk assessments for Russian crude shipments. Premium increases and coverage restrictions for Russian crude effectively raised total acquisition costs beyond posted crude prices. Russian crude imports declined from $3.62 billion in July 2025 to $2.71 billion in December 2025.
India’s total crude oil imports from all sources reached $11.29 billion in December 2025, up 9.1% from $10.34 billion in December 2024. Cumulative imports for April-December 2025 totaled $105.10 billion, compared to $109.33 billion in the corresponding period of 2024. The insurance dynamics demonstrate how ancillary markets influence primary transactions.
