After tariff cutdown by US, India likely to scale down Russian oil buys

India volition reportedly trim its Russian lipid imports pursuing the woody with the US, who has agreed to chopped commercialized tariffs successful exchange. US President Donald Trump signed an bid removing the further 25 per cent work connected Indian imports aft India promised to alteration Russian lipid purchases.

While refiners haven't received authoritative orders to halt buying Russian oil, they've been informally told to standard back, according to sources quoted by PTI.Officially, erstwhile asked during the MEA briefing past week astir India putting a halt connected buying Russian oil, spokesperson Rabdhir Jaiwal cited vigor information guiding India's decisions. “The authorities has stated publically connected respective occasions that ensuring the vigor information of 1.4 cardinal Indians is the ultimate precedence of our government.

Diversifying our vigor sourcing successful keeping with nonsubjective marketplace conditions and evolving planetary dynamics is astatine the halfway of our strategy to guarantee this.

All of India’s decisions were taken and volition beryllium taken with this successful mind,” helium said.Most Indian refiners volition grant their existing orders but won't spot caller ones. Companies similar HPCL, MRPL, and HMEL already stopped buying Russian lipid aft US sanctions past year.

IOC and BPCL are readying to upwind down their purchases. Reliance Industries, India's biggest buyer, volition apt halt aft receiving its last shipment of 150,000 barrels.Nayara Energy stands arsenic an exception. The institution faces sanctions from the EU and UK owed to its Russian connections, with Rosneft holding a 49.13 per cent stake. This has near Nayara with constricted options, forcing it to proceed buying Russian lipid from non-sanctioned entities.India's Russian lipid imports person been falling since US sanctions deed Rosneft and Lukoil. December 2025 saw imports of 1.2 cardinal barrels per day, down from 2.1 cardinal successful May 2023. January saw further diminution to 1.1 cardinal barrels. Experts expect this fig to driblet beneath 1 cardinal soon."Russian volumes stay mostly locked successful for the adjacent 8-10 weeks and proceed to beryllium economically captious for India's analyzable refining system," said Sumit Ritolia from Kpler.

He expects imports to enactment betwixt 1.1-1.3 cardinal barrels regular done aboriginal Q2.India, which imports 90% of its lipid needs, benefited from discounted Russian lipid aft Western sanctions pursuing the Ukraine invasion. The caller US woody mightiness see accrued American lipid purchases and imaginable Venezuelan lipid imports.Prashant Vasisht from Icra noted that replacing Russian lipid shouldn't importantly interaction India's import bill, estimating an summation of little than 2%. He suggested Venezuelan crude, being cheaper and suitable for Indian refineries, could beryllium a viable alternative.