The country’s refiners are reportedly being offered significant discounts from Moscow
India is likely to increase its oil purchases from Russia in the coming months, with refiners in the South Asian nation being offered significant discounts, Bloomberg reported on Wednesday.
Russia is offering Indian refiners discounts of $2 to $2.50 per barrel of Urals crude compared to Dated Brent, the media outlet said, citing sources familiar with the matter.
Oil imports from Russia to India are projected to rise by 6% in October and average around 1.7 million barrels per day, according to analytics firm Kpler. The projected rise comes despite the 25% US punitive tariffs imposed on most Indian products for New Delhi’s continued purchases of Russian oil.
India, the world’s third-largest oil importer and consumer, has seen a major shift in its energy dynamics since the escalation of the Ukraine conflict, with Russia emerging as its top oil supplier since February 2022.
Russian crude accounted for 34% of India’s oil imports in September, according Kpler data.
Following the introduction of additional Western sanctions on Moscow in July, India reiterated its commitment to continue purchasing Russian oil, provided the price remains below the $47 per barrel cap, according to media reports.
Indian refiners have maintained that they will buy as long as shipments are transported on non-sanctioned vessels and transactions avoid blacklisted companies or individuals, Bloomberg reported.
Washington has imposed 50% tariffs on Indian goods, including a 25% penalty specifically linked to India’s continued purchases of Russian oil. New Delhi has resisted reducing imports, viewing the US position as economic coercion.
India’s state-owned oil producers are looking for flexibility in purchases and are in talks with Middle Eastern and African oil companies for new long-term supply deals for next year, according to Bloomberg.
India’s energy demand is poised to grow over the next few decades.
BP’s chief economist said on Tuesday that the country is expected to become the world’s largest oil consumer in 2050.
