Indian oil refiners are urgently sourcing alternatives as the US and EU intensify pressure on Russian energy exports. On July 31, 2025, former US President Donald Trump announced a 25% tariff on Indian exports, criticizing India’s Russian oil purchases. This has triggered a rush among Indian refiners to secure crude from other regions, amid tightening global supply and rising prices.
BulletsIn
- India heavily reliant on Russian crude—1.63M barrels/day in 2024, over one-third of imports
- US, EU increasing sanctions on Russian energy; targeting trade via stricter enforcement
- Trump announced 25% import tariff on Indian goods, citing Russian oil, arms purchases
- Indian refiners now shifting to West African, Middle Eastern oil sources
- Indian Oil Corp, Bharat Petroleum issuing urgent tenders for early crude delivery
- Supply chain hit—EU to ban diesel made from Russian-origin crude processed in India
- Rising crude prices and reduced Russian supply worsening situation for refiners
- Private refiners still dominate Russian crude buying, but uncertainty grows
- Indian firms seeking clarity from govt on oil sourcing strategy amid sanctions
- Refiners rushing tenders for oil delivery earlier than usual—late Sept to early Oct
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