India may spend up to $3.7 bn annually to replace 1 mn bpd of Russian crude

India’s reliance on Russian crude has grown since Western sanctions tightened, prompting policymakers to consider alternative sources for roughly one million barrels a day. Recent calculations suggest that filling this gap could raise the nation’s oil import expenditure by up to $3.7 billion each year. The added cost reflects higher freight rates, premium pricing for non‑sanctioned suppliers and the need to diversify logistics across multiple ports. Economists warn that such a surge in import bills may pressure the current account and could be passed on to consumers through higher fuel prices. The government is reportedly reviewing strategic stockpiles and negotiating longer‑term contracts with friendly producers to mitigate the financial impact.