Base Oil Report
India is heavily dependent on oil imports from West Asia. Top three suppliers in 2018-19 were from Iraq, with about 46.6 million tonnes (MT), followed by Saudi Arabia (40.3 MT) and the UAE (17.5 MT). Kuwait supplied 10.8 MT. Together, these countries supplied about 51% of the total of 226.5 MT of oil worth $111.9 billion or Rs 7.83 lakh crore. India’s crude oil import dependency on the basis of consumption was 83.8% in 2018-19. Put otherwise, 8.38 of every 10 litres of crude consumed in the country was imported.
India is the third-largest consumer of oil after the US and China. India’s efforts in recent years have resulted in diversification of energy sources with the focus on secure, stable and predictable supplies, a third official said, also on condition of anonymity. Efforts have also been made to change the energy mix, with a push for including more renewable sources.
The Indian domestic market Korean origin Group II plus N-60–70/150/500 price at the current level is marginally up for lighter grades and heavier grades. As per conversation with domestic importers and traders prices for N – 70/ N- 150/ N - 500 grades and at the current level are quoted in the range of Rupees 42.95 – 43.15/43.65 – 43.80/48.80 – 48.95 per litre in bulk plus 18% GST as applicable. Discounts being offered for sizeable quantity. The above mentioned prices are offered by a manufacturer who also offers the grades in the domestic market, while another importer trader is offering the grades cheaper by Rs.0.30 – 0.35 per litre on basic prices. Light Liquid Paraffin (IP) is priced at Rs.44.35 – 44.50 per litre in bulk and Heavy Liquid paraffin (IP) is Rs.50.20 – 50.35 per litre in bulk respectively plus GST as applicable.
While in the month of November 2019, India imported 268449 MT of Base Oil, India imported the huge quantum in small shipments on different ports like 162135 MT (60%) into Mumbai, 37295 MT (14%) into JNPT, 20189 MT (8%) into Pipavav, 15983 MT (6%) into Chennai, 10279 MT (4%) into Hazira, 8864 MT (3%) into Kolkata, 6719 MT (3%) into Mundra, 4312 MT (2%) into Kandla, 1631 MT (1%) into Ennore and 1042 MT into Other Ports.
| Month | Group I - SN 150 Iran Origin Base Oil CFR India Prices | Napthenic Base Oil HYGOLD L 2000 US Origin CFR India Prices | N- 70 South Korea Origin Base Oil CFR India Prices | Rubber Process Oil (Aromatic Extract) (Drums) Iran Origin CFR India Prices |
|---|---|---|---|---|
| November 2019 | 565 – 575 | 665 – 675 | 610 - 620 | 345 – 350 |
| December 2019 | 545 – 555 | 625 – 635 | 595 - 605 | 335 - 340 |
| January 2020 | 550 – 560 | 630 - 640 | 600 - 610 | 340 - 345 |
| Since November 2019, prices have decreased by in January 2020 | USD 15 (3%) | USD 35 (5%) | USD 10 (2%) | USD 5 (1%) |
