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India Races to Build Domestic Oil Tanker Fleet Amid Surging Global Rates
14 Nov
Summary
- Global oil tanker rates have shot up again
- India imports 88% of its oil and 51% of its gas
- Massive capital investment and expertise needed to build oil tankers
As of November 14th, 2025, global oil tanker rates have once again shot up, posing a significant challenge for India, a country that imports nearly 88% of its oil and 51% of its gas needs. In September 2025, the rate to ship crude from Saudi Arabia to China stood at around USD87,000 per day for a Very Large Crude Carrier (VLCC).
In response to this issue, India is now seeking to tackle the problem by owning its own fleet of oil tankers. This ambitious plan, however, faces significant hurdles. Building massive oil tankers requires massive capital investment and specialized expertise, which may prove easier said than done.
The situation has been further exacerbated by the US sanctions imposed last month on Moscow-based oil majors Lukoil and Rosneft, forcing India to skip buying cheap Russian crude. With rising transportation costs and limited access to affordable oil sources, India's energy security is under increasing strain.
