Imports from Saudi Arabia recovered partly in July, but longer shipping routes and rising freight costs continue to challenge India’s energy supply chain
India’s crude oil imports from Saudi Arabia dropped sharply from USD 2.8 billion in April 2026 to USD 0.9 billion in June, before recovering to USD 1.4 billion in July, as the West Asia conflict disrupted maritime trade routes, according to a Rubix Data Sciences report released on October 5. India Shipping News
The Rubix Country Insights: Saudi Arabia Update – September 2026 said Saudi Arabia remained India’s third-largest crude supplier by value between April and July. Crude oil and natural gas accounted for 68 per cent of India’s imports from the Kingdom during the period, compared with 74 per cent a year earlier. India Shipping News
The disruption has highlighted the importance of alternative shipping routes. Saudi Arabia’s East-West pipeline carries crude to Yanbu on the Red Sea, allowing some supplies to bypass the Strait of Hormuz. However, attacks by Yemen-based Houthi forces around the Bab-el-Mandeb have created additional risks for shipments moving through the Red Sea. India Shipping News
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Indian-bound Saudi cargoes from Yanbu may now require longer voyages around the Cape of Good Hope, increasing transportation time and costs
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Rubix said freight rates for Saudi crude could rise by as much as 50 per cent under such conditions. India Shipping News
The shift in supplies is consistent with broader changes in India’s crude sourcing during the crisis. Reuters reported in July that Middle Eastern oil imports fell about 27 per cent during April-June, while Russian supplies increased significantly as Indian refiners sought alternatives to disrupted Gulf shipments. Reuters
Despite the energy disruption, India-Saudi economic ties remain substantial. Bilateral goods trade stood at USD 41.1 billion in FY2026, while Saudi Arabia has committed to investments of up to USD 100 billion across sectors including energy, infrastructure, manufacturing, technology and healthcare. India Shipping News
