Refiners prioritise affordable crude and supply security
Key Highlights
- Russia becomes India’s largest oil supplier.
- July imports reach record 2.78 million bpd.
- Russian crude accounts for over 50% of imports.
- US tariff proposal remains uncertain.
- Middle East tensions support Russian demand.
- Refiners prioritise affordable energy supplies.
- Diversified sourcing strategy continues.
India’s dependence on Russian crude oil reached a historic milestone in July 2026, with imports touching a record 2.78 million barrels per day (bpd), according to commodity analytics firm Kpler. For the first time, Russian crude accounted for more than half of India’s total crude oil imports, highlighting the country’s continued focus on securing affordable energy despite growing geopolitical uncertainty.
India imported around 4.96 million bpd of crude oil during July, with Russia contributing more than 50% of the total. The United Arab Emirates and Saudi Arabia remained India’s second and third-largest suppliers, though their combined exports were significantly lower than those from Russia.
The surge comes even as the United States Senate advances legislation proposing tariffs of up to 100% on countries purchasing Russian oil and gas. India and China are expected to be among the nations most affected if the legislation is eventually enacted.
However, industry observers note that the proposal is still far from becoming law. While the bill has cleared procedural stages in the US Senate, it still faces approval in the House of Representatives, where lawmakers and industry groups have expressed concerns over its economic impact and the broad tariff powers it would grant the US President.
As a result, Indian refiners have not altered their procurement strategy, preferring to continue purchasing discounted Russian crude that has remained commercially attractive since global energy markets were reshaped by sanctions on Moscow in 2022.
Apart from competitive pricing, supply security has also become a key consideration. Ongoing geopolitical tensions in West Asia, particularly around the Strait of Hormuz and the Red Sea shipping corridor, have raised concerns over disruptions to Middle Eastern oil supplies. Any prolonged disruption could significantly increase shipping costs and delivery times, making Russian crude an even more dependable option for Indian refiners.
Although international crude prices have moderated recently, experts believe short-term price fluctuations are unlikely to change India’s sourcing strategy, as refinery procurement decisions are generally planned several weeks or months in advance.
If the proposed US legislation eventually becomes law, Indian refiners may have to diversify sourcing by increasing purchases from the Middle East, the United States, or Latin America. Until then, Russia is expected to remain India’s dominant crude oil supplier as refiners continue balancing affordability, energy security, and geopolitical risks.
