Indian refiners are striving to fully restore imports of Russian crude, even as Washington’s steep tariffs and dwindling cargo availability cast a shadow over New Delhi’s defiance of American pressure.
India’s state-run processors, led by Indian Oil Corporation, have pressed ahead with plans to buy more Russian oil, seeking to roll back recent declines in shipments. But October-loading cargoes have been harder to come by, as barrels are increasingly diverted to China and other competing buyers, according to media reports citing people familiar with the trade.
The United States last month imposed a 50 per cent tariff on Indian goods, citing New Delhi’s continued purchase of Russian crude as a source of funding for Moscow’s war in Ukraine. The measure triggered a sharp response from New Delhi, which reiterated its right to secure energy supplies at affordable rates.
Finance Minister Nirmala Sitharaman reaffirmed on Friday that the country would continue to source oil from Russia, insisting that the government would not yield to US demands. Oil Minister Hardeep Puri has also rebutted Washington’s position in a newspaper column, underscoring India’s rejection of what it calls unilateral economic coercion.
India had ramped up Russian imports in recent years, cushioning Moscow against Western sanctions and securing discounted barrels for its own refineries. However, flows have tapered. Ship-tracking data show that seaborne supplies eased to 1.3 million barrels a day in August, compared with 1.97 million in March. Imports may fall by another 250,000 barrels a day next month, analysts estimate.
Also read: India will keep buying Russian oil, tariffs or not: Sitharaman
The cooling trend, energy consultancy NexantECA, suggested that India’s peak buying may have passed, though refiners remain committed to long-term sourcing from Moscow. Emails seeking comment from India’s four state-owned refiners, Indian Oil, Bharat Petroleum, Hindustan Petroleum, and Mangalore Refinery and Petrochemicals, did not elicit an immediate response.
The oil market is now watching how Indian refiners recalibrate their strategy, as OPEC+ producers have agreed to relax supply curbs, increasing competition among exporters. Major Middle Eastern suppliers are expected to push more cargoes into Asia, even as Russia attempts to retain its share.
Washington, meanwhile, has sought to intensify pressure on Moscow. Treasury Secretary Scott Bessent said over the weekend that the United States and its European allies were weighing further sanctions and secondary tariffs to drive Russia towards peace talks. The Biden administration’s levies, he argued, were designed to precipitate an economic “collapse” in Moscow.
For India, however, the calculus remains rooted in energy security. The government has repeatedly stressed that its crude purchases are based on national interest, not geopolitics, and that affordable oil is essential for sustaining growth and containing inflation.
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