Indian Oil Firms Slash Russian Imports: September Sees 32% Drop, 45% Decline Since June Amid Trump’s 25% Energy Tariff

After the U.S. imposed a 25% tariff on oil purchases from Russia, Indian state-owned companies have cut back on their imports. Data from Kpler reveals that in September, firms like Bharat Petroleum and Indian Oil imported around 605,000 barrels a day. That’s a 32% drop from August and a 45% reduction from June. Experts say this is due to pressure from the U.S. and India’s desire to diversify its oil sources.

On the flip side, private firms like Reliance Industries have ramped up their Russian oil imports. In September, they increased their purchases to 970,000 barrels per day, a 4% rise from the previous months. Interestingly, they sourced over 60% of their oil from Russia. The reason? Cheaper prices. These companies profit by refining the crude and exporting the products globally, while government firms primarily supply the domestic market.

In August, former President Trump set a 50% tariff on India’s Russian oil imports. This includes both a reciprocal tariff and a penalty, affecting the overall costs for Indian buyers. Russian officials insist that their crude remains irreplaceable due to its low price. A senior diplomat noted that India benefits from approximately a 5% discount on Russian oil.

Despite the cuts in imports from the government’s side, the reliance on Russian oil has noticeably increased. In 2020, Russia supplied only 1.7% of India’s oil needs, but that figure is expected to rise to 35.1% by 2025. The financial benefits are evident, as Indian oil companies have seen significant profit increases due to this cheaper crude.

For instance, the profits of Indian Oil, Bharat Petroleum, and Hindustan Petroleum skyrocketed from ₹3,400 crore in 2022-23 to ₹86,000 crore in 2023-24. Although they faced a dip to ₹33,602 crore in 2024-25, this is still substantially higher than figures from previous years.

In an even broader context, it’s important to note that while the U.S. oil prices average around $83 per barrel, Russian oil sits at about $63. This pricing disparity is crucial for companies looking to maximize profits in a competitive global market.

As the landscape of oil imports continues to evolve, how India navigates these tariffs and supply changes will likely shape the future of its energy strategy.



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