Indian State Refiners Halt New Russian Oil Purchases: Report

Indian state-run oil refiners have pulled back from purchasing Russian crude in recent days, amid tightening global scrutiny and diminishing financial incentives. As per news reports, no state refiner has sought Russian cargoes over the past week, driven by both geopolitical pressure and lower discounts, signalling a significant shift in India’s sourcing strategy.

The drop in Russian crude discounts to their lowest since 2022 has made the trade less attractive for Indian buyers, especially as global demand remains steady and Russian supply tightens.

Shift to Alternative Supply Routes

With growing uncertainty, Indian state refiners, including Indian Oil Corporation, Bharat Petroleum, Hindustan Petroleum, and Mangalore Refinery have turned to spot markets for their crude needs. 

As per news reports, Recent purchases have leaned towards Middle Eastern grades like Abu Dhabi’s Murban and African supplies. Meanwhile, private sector players such as Reliance Industries and Nayara Energy, which maintain long-term contracts with Moscow, have become the largest buyers of Russian Oil. Private refiners collectively account for around 60% of India’s Russian oil imports this year.

Market Dominance and Future Implications

As per news reports, Russia remains India’s top oil supplier, meeting around 35% of the country’s total crude needs. In the first half of 2025, India imported an average of 1.8 million barrels per day of Russian oil. Of this, nearly 60% was purchased by private refiners. The remaining volumes were lifted by state-owned refiners, which together control over 60% of India’s total refining capacity of 5.2 million barrels per day. 

Also Read: Best Oil and Gas Stocks in India in August 2025- Oil India, ONGC, and Others Based on 5Y CAGR!

Conclusion

As Indian refiners recalibrate their buying patterns amid global headwinds, the pause in Russian oil purchases marks a potential turning point. With tariffs looming and discounts fading, the nation’s state refiners are clearly navigating a fine balance between political risks and commercial logic.

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