India’s Russian oil imports rise to 2-year high in March:New Delhi purchases 19 lakh barrels every day from Moscow

With rising tensions in the West Asia and supply disruptions in the Strait of Hormuz route, India has once again turned to Russia. India, which imports about 90% of its crude oil requirements, has significantly increased its purchases of Russian crude over the past two months. Due to the ongoing conflict between the US-Israel and Iran, there has been a shortage of oil in the global market, leading Indian refiners to now try to procure more and more oil from Russia. Imports from Russia reached 1.98 million barrels per day in March According to data from intelligence firm Kepler, crude oil imports from Russia averaged 1.98 million or 1.9 million barrels per day (bpd) in the month of March. This is the highest level since June 2023. However, in April this figure has fallen to 1.57 million, that is, 15.7 lakh barrels per day, but experts say that this decline is not due to lack of demand, but rather due to the shutdown carried out for maintenance at Nayara Energy’s refinery. It is expected to surge again from next month. India will maintain its dependence on Russian oil Vandana Hari, founder of Singapore-based consultancy ‘Vanda Insights’, says that India is trying to buy all the Russian oil it can get. He stated that as long as there are difficulties in supply from the Persian Gulf, India will maintain its dependence on Russian oil. Actually, due to the military action by America and Israel against Iran and the closure of the Hormuz Route, supply chains worldwide have been affected. Refiners hopeful of exemption despite American sanctions India had earlier reduced purchases from Russian companies Rosneft and Lukoil due to fear of American sanctions. Last year, India had to face some restrictions due to pressure from the Donald Trump administration, but equations have changed in the current circumstances. Officials of Indian refining companies believe that the American exemption granted for oil imports from Russia may be extended. Even if the exemption is not extended, India may continue purchases due to limited alternative supply options. India’s Argument: ‘Meeting Domestic Demand is Our Priority’ Joint Secretary of the Ministry of Petroleum, Sujata Sharma, said during a press briefing in New Delhi, ‘Our priority is to secure the necessary energy to meet domestic demand.’ When asked about the necessity of American exemptions, she clarified that the decision to purchase Russian oil is entirely based on commercial and technical feasibility. This means if Indian refiners find it economical to take oil from Russia, they will continue to do so. Number of Tankers Standing in the Sea Decreased According to Vortexa’s data, Russian crude oil stock at sea had increased significantly when India stepped back at the end of last year due to fear of American sanctions. By early January, approximately 155 million or 15.5 crore barrels of oil were stored in tankers stationed at sea, which has now decreased to around 100 million or 10 crore barrels. This means that Indian refiners have now also started processing the old stuck shipments. What is the Hormuz route, why is it important for India?