India reduces Russian oil purchases:Imports fall 32% in September as compared to preceding month, 45% since June

After the US President Donald Trump’s 25% extra tariff, Indian government companies have reduced crude oil purchases from Russia. According to data research agency Kpler, state-owned oil refining companies like Bharat Petroleum (BPCL) and Indian Oil (IOC) imported an average of 6,05,000 barrels per day (bpd) of Russian oil in September. This represents a 32% reduction compared to August. These companies have reduced oil purchases by up to 45% compared to June. Due to reduced purchases, total crude oil imports from Russia decreased by 6% in September. According to experts, this reduction was made due to US pressure and to bring diversification in supply. In contrast, private refining companies like Reliance Industries and Nayara Energy have increased their purchases. Private Companies Increased Oil Purchases In September, private refining companies’ imports increased to 9.7 lakh barrels per day (bpd). This is 4% higher than their average from April to August and 8% more than August. These figures show that private companies purchased more than 60% of their oil from Russia. The major reason for this is the profit from cheaper Russian oil. Private companies earn profits by converting crude oil into petroleum products and exporting them to other countries. Meanwhile, government companies mostly use Russian oil for domestic supply. Trump Had Imposed 25% Extra Tariff on India Earlier in August, Trump had imposed a 25% extra tariff on India for buying oil from Russia. Since August 27, India faces a total 50% tariff. This includes 25% reciprocal tariff and 25% penalty for buying oil from Russia. Russia had said – There is no alternative to our crude oil Earlier Russia had said that there is no alternative to its crude oil because it is very cheap. Senior Russian diplomat Roman Babushkin said this on August 20. He said – India is getting about 5% discount on Russian crude oil. India understands that there is no alternative to changing oil supply because it is making huge profits from it. Indian Oil Companies’ Profits Increase from Cheap Russian Oil In fiscal year 2020, India imported only 1.7% of its oil needs from Russia. This share has increased to 35.1% in fiscal year 2025. The benefit of buying cheap oil from Russia is also reflected in oil companies’ profits. According to company filings…