New Delhi: India’s crude oil imports climbed to a record in June as refiners ramped up purchases of discounted Russian barrels, capitalising on favourable prices while guarding against potential supply disruptions stemming from heightened geopolitical tensions in West Asia.
Ship-tracking data from commodity intelligence firms showed India imported about 4.9 million barrels of crude a day in June, the highest monthly volume on record. Russia supplied around 2.6-2.7 million barrels a day, accounting for more than half of India’s total crude imports for the first time and further cementing its position as the country’s largest oil supplier.
The sharp increase in imports came as refiners responded to concerns over shipping through the Strait of Hormuz following the Israel-Iran conflict. Although the waterway remained open, fears of possible disruptions prompted Indian companies to secure additional cargoes and build inventories to ensure uninterrupted refinery operations.
The buying spree reflected a cautious approach to procurement at a time when global oil markets were highly sensitive to developments in the Middle East. Refiners sought to reduce exposure to logistical risks while taking advantage of discounted Russian crude, which continued to offer significant savings compared with several competing grades.
Commercial Logic Prevails
Price remained the biggest driver of India’s procurement strategy. Russian crude has consistently traded at discounts to comparable Middle Eastern supplies, enabling Indian refiners to improve margins while maintaining stable fuel supplies for the domestic market.
Alongside Russia, refiners also increased purchases from the United States and maintained imports from producers in the Gulf, reflecting a broader strategy of diversifying supply sources without sacrificing cost competitiveness.
The June data highlight how Indian refiners continue to balance commercial considerations with energy security, adjusting sourcing patterns in response to evolving geopolitical risks.
Russia’s dominance in India’s crude basket has expanded dramatically since 2022, when Western sanctions redirected much of its oil exports toward Asia. Before then, Russian crude accounted for only a marginal share of India’s imports. Today, it has become the country’s single largest source of crude oil.
The latest figures place Russia well ahead of traditional suppliers such as Iraq, Saudi Arabia and the United Arab Emirates. Analysts expect Russian barrels to remain an important part of India’s import mix as long as they retain a meaningful price advantage over competing grades.
Indian refiners have repeatedly maintained that crude purchases are based on commercial considerations, including pricing, freight costs, crude quality and supply reliability.
Energy Security Focus
The record imports also underscore India’s growing emphasis on strengthening energy security. The country imports more than 90% of the crude oil it consumes, leaving it vulnerable to geopolitical disruptions and fluctuations in international prices.
By stepping up purchases during June, refiners ensured comfortable crude availability in the near term, helping reduce concerns over supply shortages despite continuing uncertainty in West Asia.
The latest import figures demonstrate India’s pragmatic approach to energy procurement. While refiners continue to diversify supplies from multiple regions, discounted Russian crude remains central to keeping import costs under control and supporting the country's refining sector.
With geopolitical risks likely to remain elevated and global oil markets susceptible to sudden disruptions, India’s sourcing strategy is expected to stay flexible. June’s record imports illustrate that securing reliable and competitively priced crude remains the overriding priority for one of the world's fastest-growing energy consumers.