In May 2023, Russian crude accounted for a record share of Indian imports, reaching 46 percent according to data tracked by analytics firm Kpler and cited by Bloomberg. This sharp shift reflects a broader pattern in which price differentials drive supplier choices across rival markets, with India seeking lower-cost fuel sources to meet its growing energy needs.
Industry observers note that the uptick in Russian oil imports to India is primarily a response to price. Russian fuel has been cheaper than crude from many other suppliers, a dynamic reinforced by India’s April pricing data showing crude from Russia at about $68 per barrel. In contrast, crude from major suppliers such as Saudi Arabia has traded closer to $87 per barrel. These price gaps influence refinery feedstock decisions across the country, even as other factors such as supply reliability and contract terms come into play.
Bloomberg also highlighted structural limits within India’s refining sector. The current mix of refinery capacities is not easily adaptable to a sudden surge in Russian crude. Specific plants were not designed to process higher proportions of this grade, which constrains how quickly the sector can scale up Russian imports without equipment upgrades or process reconfiguration. The implication is that even when Russian supplies are cheaper, the overall capacity to absorb them hinges on the readiness of the refining network to handle the change.
At Bharat Petroleum Corporation Limited facilities, for instance, the share of Russian oil in the crude intake has been modest, around 10 percent in some locations. Yet, Chinese-style diversification trends or new facilities show a higher potential allocation, with estimates suggesting that newer refineries could process Russian crude at roughly 40 percent of their feedstock. This differential highlights a transition phase where older plants limit exposure while newer assets are built to accommodate a growth in cheaper feedstocks. There is also a sense of inertia within the industry regarding modernization, which further compounds the challenge of rapidly shifting the import mix without a coordinated investment program across the refining sector.
On the international policy front, the United States has signaled a pragmatic stance. A senior U.S. official noted that Washington does not object to India sourcing oil from Russia, so long as New Delhi adheres to the price ceiling framework negotiated among Western partners. The aim is to balance energy security needs with conservation of price discipline in global crude markets, a calculus that reflects broader geopolitical and economic priorities for both sides. The statement underscores how energy trade patterns can align with or diverge from broader strategic objectives, depending on domestic demand, market fundamentals, and international agreements. Overall, the data suggest a nuanced mix of price-driven traffic, capacity constraints, and policy considerations shaping India’s oil import portfolio.