India’s Refiners Prepare to Gradually Cut Russian Oil Imports Amid Market Dynamics and Geopolitical Pressures

In 2025, Indian refiners face a delicate balancing act in managing crude oil imports amid rising geopolitical tensions and US-imposed tariffs on Russian oil imports. According to industry data and expert analyses, Indian state-owned refiners like Indian Oil Corp, Bharat Petroleum, and Hindustan Petroleum have sharply reduced Russian crude imports by 45% between June and September 2025.

The primary driver behind this reduction is market economics: the discount on Urals crude has narrowed to about $2–3 per barrel below Brent benchmarks, reducing the price advantage of Russian oil. Additionally, Ukrainian drone strikes on Russian refineries have introduced supply chain uncertainties.

Despite this reduction by public sector companies, private refiners—prominently Reliance Industries and Rosneft-back Nayara Energy—have ramped up their imports of Russian crude to offset the gap. Reliance doubled its intake to 850,000 barrels per day in September, while Nayara reached nearly 400,000 barrels per day, its highest this year.

Industry experts attribute India’s continued reliance on Russian oil primarily to its attractive pricing and favorable gross product margins, especially during the peak festive season fuel demand between October and December. IndianOil chairman, Arvinder Singh Sahney, emphasizes the procurement is based purely on economics rather than political considerations.

Overall, Russia remains India’s largest oil source despite a 10% dip in imports so far in 2025. Indian refiners are simultaneously exploring alternative sources in the Middle East, Africa, and the US to diversify portfolios and mitigate risks.

Key Highlights:

Indian state refiners cut Russian crude imports by 45% June–September 2025.

Discount on Russian Urals crude narrows to $2–3 per barrel below Brent.

Ukrainian drone strikes create supply chain uncertainties.

Private refiners Reliance and Nayara increase Russian crude imports significantly.

Russia remains India’s largest oil supplier with 34% share in September.

Price, product margins drive procurement decisions amid geopolitical pressure.

Efforts ongoing to diversify crude sourcing to Middle East, Africa, and US.

Import volumes reflect economic pragmatism balancing national energy security.

Peak festive season fuel demand influences import strategies.

US tariffs and diplomatic pressures have yet to significantly shift India’s energy strategy.

This evolving dynamic underscores India’s pragmatic approach to crude sourcing amid complex global pressures, aiming to maintain affordable energy security for its growing economy.

Sources: India Today, The Hindu, NDTV, Bloomberg, Reuters, Economic Times