Despite tariff attacks, India is the largest oil buyer from Russia, see figures

News Topical, Digital Desk : Russia remains India's largest source of oil, accounting for 34% of crude oil supplies in September 2025. However, Russian oil imports fell by 10% in the first eight months of 2025, according to the latest report by commodities and shipping market tracker Kpler.

India imported more than 4.5 million barrels per day (bpd) of crude oil in September, up 70,000 barrels from August but flat compared to the same period last year. Russian oil accounted for 1.6 million bpd of this.

Will reducing discounts reduce demand?

Russian oil accounted for 1.6 million bpd of India's total crude oil imports in October, 1.8 million barrels less than the average for the first eight months of 2025. Kpler's report suggests this decline is due to market dynamics, not the threat of US tariffs or European criticism.

The drop in oil prices has reduced the discount on Russian crude to around $2 per barrel. This has increased opportunities for Indian refiners to purchase oil from other sources, such as West Asia, Africa, and the United States, which are capable of processing a variety of crudes.

The decline in demand for fuels like diesel during the monsoon also contributed to a slight shift in focus away from Russian oil, as the discount amount reduced.

Russian oil remains important during the festive season

According to Kpler's report, Russian oil will remain one of the most cost-effective options for Indian refiners. This is due to Russian oil's high gross product margin (GPW) and discounts compared to other alternatives. Refinery operations are expected to accelerate to meet the increased fuel demand during the October-December festive season, which will maintain demand for Russian oil.

India's oil procurement policy is based on market dynamics and while the share of Russian oil may have declined slightly, its economic viability will keep it the preferred choice for Indian refiners.

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