No US pressure to cut Russian oil imports, says Hardeep Singh Puri as India shifts to Gulf crude

Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Tuesday said India had faced no pressure from the United States to reduce its imports of Russian crude oil, asserting that purchasing decisions were driven by commercial considerations, including prices and discounts.

“I never felt anything,” Puri said at an industry event when asked whether Washington had pressured New Delhi to cut its purchases of Russian oil.

His remarks come as Indian refiners increase purchases from West Asian suppliers and reduce their reliance on Russian crude, with changing price advantages and stiff competition from China influencing sourcing decisions.

Gulf oil imports recover as Russian purchases decline

India's imports of crude oil from West Asia rose sharply in September, returning to levels seen before the war in Ukraine, while purchases of Russian oil declined, according to ship-tracking data.

Middle Eastern crude imports rose to around 2.8 million barrels per day in September, accounting for approximately 54% of India's total crude imports, compared with 32% in August. In contrast, Russian crude imports fell by around 14% month-on-month to approximately 1.8 million barrels per day.

The shift reflects improving availability of oil from Gulf suppliers, alongside increased competition from Chinese refiners for Russian cargoes.

Puri said supplies from West Asia had been increasing as producers in the region were able to ship more crude. The recovery in availability has given Indian refiners greater scope to source oil from Gulf countries rather than depend as heavily on Russian supplies.

Before the Russia-Ukraine war began, Russian crude accounted for just 0.2% of India's oil imports, Puri said. Purchases increased significantly after the conflict began as Russian suppliers offered discounts that made their crude attractive to Indian refiners.

Discounts remain central to India's crude sourcing

Puri said the volume of Russian oil purchased by India depended on the discounts available and how its price compared with other grades of crude.

He added that Indian refiners had reduced Russian purchases as they found discounted oil from Gulf suppliers more attractive.

“Whatever people say or do, ultimately it is anchored in their self-interest,” the minister said.

The comments underline the commercial factors shaping India's crude procurement strategy, with refiners weighing the relative cost of different grades, availability and competition for supplies.

Russian oil had gained a larger share of India's import basket after the Ukraine war, when discounted cargoes offered refiners an economical alternative to supplies from other regions. However, the recent recovery in West Asian shipments has enabled Indian companies to diversify their purchases as the relative price advantage of Russian crude changes.

India remains heavily dependent on imported crude to meet its energy requirements, making the availability and cost of supplies important considerations for refiners.

India expands refining capacity to meet demand

Puri also said India was expanding its refining capacity to meet domestic demand and fulfil its export commitments.

The country has a large refining industry that supplies fuels to the domestic market as well as overseas customers. Expanding capacity is intended to support these requirements as refiners adjust their crude sourcing in response to changing market conditions.

The latest shift towards West Asian oil reflects a combination of improved regional supplies, pricing considerations and competition for Russian cargoes, rather than any pressure from Washington to reduce imports, according to the minister's remarks.