The Indian authorities have approached state-owned oil refineries with a request to consider purchasing larger volumes of crude oil from the United States and Venezuela. This move is linked to a new trade agreement with the US, which the administration of President Donald Trump interprets as New Delhi’s commitment to gradually abandon imports of Russian oil.
Source: Bukvy
According to industry sources, Indian refineries were advised to give priority to American grades of oil when making spot market purchases through tenders. The government has also urged consideration of importing Venezuelan crude, although such supplies are planned to be carried out within the framework of private negotiations with traders.
India’s oil purchases have come under particular scrutiny following statements by Donald Trump that the country had agreed to stop importing Russian oil as part of trade arrangements. Officially, New Delhi has not yet commented on these remarks.
At the same time, India’s position is based on diversifying supply sources, with energy security remaining the key priority. Industry representatives note that the possibility of sharply increasing imports from the US and Venezuela is limited by the technical characteristics of Indian refineries, which are optimized for processing medium grades of oil, while American crude is lighter and low-sulfur.
In addition, the economic feasibility of imports from the US is reduced by high freight rates, making long-distance transportation less profitable. Indian refiners have cheaper alternatives from West African countries and Kazakhstan, which are geographically closer.
According to traders, Indian Oil, Bharat Petroleum, and Reliance Industries are not accepting offers to purchase Russian oil with loadings in March and April, although some deliveries for March had already been scheduled. Most other Indian refineries have temporarily suspended purchases of Russian crude.
Despite this, the joint statement by the US and India did not directly mention Russian oil. At the same time, Donald Trump announced the cancellation of a 25% tariff on Indian goods that had been imposed due to purchases of raw materials from Russia, stating that New Delhi had committed to stopping direct or indirect imports. India has not officially confirmed plans to completely abandon such supplies.
After Russia’s full-scale invasion of Ukraine in 2022, India became the largest buyer of Russian seaborne oil, which drew criticism from Western countries that imposed sanctions on Russia’s energy sector. Currently, Indian refineries are gradually increasing oil purchases from the Middle East, Africa, and South America, reducing the share of Russian crude in their imports.
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