INDIA DIVERSIFIES OIL SUPPLIES BUT KEEPS RUSSIAN CRUDE IN THE ENERGY MIX

September 30, 2026

India is increasing purchases from traditional Middle Eastern suppliers while continuing to import significant quantities of Russian crude, as New Delhi weighs energy requirements against the possibility of higher US tariffs on countries purchasing Russian oil.

Indian crude imports have risen in September, with supplies from Iraq, Saudi Arabia and Kuwait accounting for a larger share of shipments. At the same time, Russian crude imports have declined from earlier levels, although Russia remains an important source of India's oil supply.

The shift comes amid a US law giving President Donald Trump authority to impose tariffs of up to 100 per cent on goods from countries that continue certain purchases of Russian energy. The measure has increased pressure on major buyers such as India and China.

India has maintained that its energy policy is based on securing reliable supplies from multiple sources. The government has also indicated that any changes in its purchasing pattern will be guided by market conditions and the country's energy-security requirements.

For Indian refiners, Russian crude remains commercially significant, while increased purchases from Middle Eastern producers provide an additional source of supply. The availability, price and transportation of alternative crude grades will influence how rapidly the import mix changes.

The issue also comes as India and the United States continue discussions on a bilateral trade agreement. New Delhi has raised concerns about the possible effects of the US measures on bilateral economic relations and international energy markets.

India's evolving oil-import strategy therefore reflects a combination of supply diversification, market conditions and wider geopolitical pressures, with Russian crude continuing to form part of the country's overall energy basket.