India’s intake of Russian crude oil fell by 26 percent in August to approximately 1.5 million barrels per day, driven by narrowing price discounts and competition from Chinese independent refiners.
Industry trade figures and tanker tracking services indicated that Indian state-owned and private refiners moderated spot purchases of Russian Urals crude as discount margins relative to dated Brent narrowed significantly. Russian crude suppliers redirected higher volumes to independent Chinese refiners who offered higher netback prices, reducing the price advantage that had made Russian barrels a dominant component of India’s import mix over the preceding two years.
In response to tighter differentials, Indian refiners shifted procurement back toward traditional Middle Eastern suppliers, increasing purchases of term crude from Saudi Arabia, Iraq, and the United Arab Emirates. Commercial refining executives stated that procurement decisions remain strictly commercial, balancing landed crude costs, shipping freight rates, and product refinery yields.
Market analysts noted that while Russia remains India’s largest single crude oil provider, domestic refiners are actively maintaining diversified supply portfolios to minimize exposure to geopolitical trade shifts and sanctions compliance complications.
Commercial energy analysts highlighted that Indian refiners have capitalized on crude flexibility, utilizing complex refinery configurations to alternate between Russian sour crudes and lighter Persian Gulf grades depending on spot netback margins. While Russian state oil suppliers offered extended payment windows in non-dollar currencies, Indian state oil firms prioritized cost parity and guaranteed delivery schedules over discounted spot allocations.
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Sources:
https://indianexpress.com/article/education/today-news-headlines-for-school-assembly-september-1-2026-j-k-to-host-first-international-film-festival-vaibhav-sooryavanshi-becomes-youngest-player-to-smash-half-century-in-duleep-trophy-10856642/