Are Indian refiners avoiding purchasing Russian oil? Here’s what we know

Indian refiners are reportedly limiting purchases of Russian oil for delivery in April, with several companies expected to continue avoiding such trades beyond that period, according to refining and trade sources. This comes amid progress in a trade deal between New Delhi and Washington, which has affected tariff structures and economic cooperation between the two countries.

According to a report in Reuters, Indian Oil, Bharat Petroleum, and Reliance Industries are not accepting offers from traders for Russian oil loading in March and April. Some deliveries of Russian oil had already been scheduled for March, but most other refiners have stopped buying Russian crude, refining sources told the news agency.

This comes amid the advancement of the US-India trade deal that has led to lowering of tariffs and strengthening of economic ties. Although the joint statement did not mention Russian oil directly, US President Donald Trump lifted a 25 per cent tariff on Indian goods that had been imposed due to Russian oil purchases. Trump said New Delhi had “committed to stop directly or indirectly” importing Russian oil.

Despite this, New Delhi has not formally announced any plans to halt Russian oil imports. The foreign ministry said diversifying energy sourcing according to market conditions and international developments remains central to its strategy to ensure energy security.

According to Reuters sources, Indian refiners may change their approach to Russian oil procurement only if directed by the government. Trump’s executive order also stated that US officials would monitor Indian purchases and could recommend reinstating tariffs if India resumed procuring Russian oil.

India’s imports of Russian oil have already declined significantly. Trade and industry data show that intake of Russian oil hit its lowest level in two years in December. Sources said last month that India was preparing to reduce Russian oil imports to below 1 million barrels per day by March, with further reductions to 500,000–600,000 barrels per day, compared to an average of 1.7 million barrels per day last year.

Most Indian refiners have shifted to sourcing more oil from Middle Eastern, African, and South American suppliers as they reduce Russian purchases, the report added.

One regular Indian buyer, the Russian-backed private refiner Nayara, relies almost exclusively on Russian oil for its 400,000-barrel-per-day refinery. However, Nayara does not plan to import Russian crude in April due to scheduled maintenance, a source familiar with its operations said.