Indian oil refiners are considering reducing crude purchases from Russia for November deliveries after the US signed a sanctions law that could impose additional tariffs on countries buying Russian energy, Bloomberg reported.
India, the world’s third-largest crude importer, has increased its dependence on Russian oil in recent years to manage costs amid global supply disruptions.
However, people familiar with the discussions said major refiners have started exploring alternative sources due to uncertainty over possible US measures.
Refiners explore alternatives amid sanctions concerns
The new US legislation gives President Donald Trump the authority to impose tariffs on countries purchasing Russian crude. India, which has been among the largest buyers of Russian seaborne oil, could be affected if Washington decides to enforce the measures.
Russian crude imports have already declined and are expected to average around 1.9 million barrels per day in September, according to Kpler data. This would represent more than 35% of India’s total crude imports and the lowest level since April.
However, replacing Russian supplies may prove challenging due to the scale of purchases and higher costs of alternative grades. Russian Urals delivered to India was priced at around $133 a barrel last week, while Middle Eastern grades such as Oman and Murban were more expensive.
Supply challenges add to uncertainty
Global crude markets are facing additional pressure as Persian Gulf producers work to restore shipments through the Strait of Hormuz. At the same time, India’s oil demand is expected to rise as a new refinery in Rajasthan and expansions at existing facilities increase crude requirements.
Discussions for November Russian crude shipments are expected to begin soon, making the next buying cycle important for refiners and policymakers.
India is also monitoring whether Washington applies the proposed measures broadly to major Russian energy buyers, including China. The legislation allows tariffs of up to 100% on goods from major buyers, but implementation depends on US government decisions.
India has maintained that its Russian oil purchases are driven by the need to secure affordable energy supplies.
