For many households and businesses, rising fuel costs often show up quietly—through higher transport fares, expensive groceries, or increased electricity bills. Behind these everyday changes lies a complex global energy puzzle, and right now, India is navigating one of its toughest phases.
Amid ongoing tensions in West Asia and disruptions in the Strait of Hormuz, India has significantly increased its crude oil purchases from Russia. Indian refiners have reportedly secured around 60 million barrels for April delivery, marking a sharp rise compared to previous months.
India’s oil import strategy is shifting rapidly as disruptions in the Strait of Hormuz impact global supply routes. With shipments from key suppliers facing delays, Indian refiners have turned to Russia to ensure uninterrupted availability of crude oil.
Higher prices fail to deter urgent imports
Despite earlier efforts to reduce reliance on Russian oil, India is now paying a premium of $5–15 per barrel above Brent crude prices. Around 60 million barrels have been secured for April delivery, highlighting how energy security has taken priority over cost considerations.
A temporary exemption from the United States under Donald Trump’s administration has allowed India to import certain Russian oil shipments without facing sanctions. This has given refiners the flexibility to secure supplies during a volatile period.
Traditional supply routes face bottlenecks
Imports from countries like Iraq and Saudi Arabia have been affected due to congestion and delays in the Persian Gulf. As a result, companies that had earlier avoided Russian crude are now returning to the market to meet demand.
To reduce dependence on a single supplier, India is also planning to import around 8 million barrels of oil from Venezuela. This move is part of a broader diversification strategy aimed at strengthening long-term energy security.
Non-dollar payments gain traction
Indian refiners are increasingly using alternative currencies such as yuan and UAE dirhams for oil transactions. These payments are being routed through third-party banks to minimise exposure to dollar-related risks and navigate evolving financial restrictions.
The government, led by Narendra Modi, continues to emphasise sourcing oil from multiple avenues. The current approach reflects a pragmatic shift, where ensuring steady supply outweighs geopolitical pressures and pricing concerns.
