India set for record crude oil imports as refiners lock in supplies

India's oil refineries are on track to achieve record crude imports in October as they move to build inventory and lock in supplies, capitalizing on a gradual easing in global shipping conditions. The uptick in import volumes reflects refineries' efforts to maximize capacity utilization and secure feedstock amid volatile international markets.

Freight rates have declined from September levels, providing some respite to Indian refiners grappling with elevated logistics costs. Despite the moderation, shipping expenses now account for roughly a quarter of total cargo costs—a sharp reversal from pre-2022 levels when they represented less than 5 percent of the bill.

The persistence of elevated freight rates underscores the lingering impact of geopolitical disruptions on global shipping routes and energy supply chains. For Indian refiners, these higher logistics costs continue to compress margins even as crude oil prices stabilize on international markets.

Refineries across India have maintained robust import schedules to meet domestic demand and sustain operational efficiency. The record import volumes in October reflect both strategic inventory management and refineries' response to the evolving global supply landscape.