Indian state refiners are still buying Russian oil despite Trump’s tariff threat

According to energy analysts, state-owned refineries in India are still buying Russian oil, even though New Delhi wants US-imposed tariffs to be eased for these purchases.

The US imposed a 25 percent “secondary” tariff on Indian goods in August, citing New Delhi’s continued imports of crude oil from Russia. Washington also imposed sanctions on Russian oil companies Lukoil and Rosneft in late November.

U.S. Senator Lindsay Graham on Sunday requested He said India’s ambassador to the US, Vinay Mohan Kwatra, called on President Donald Trump to lift these tariffs, arguing that New Delhi had reduced its purchases of Russian oil.

While India’s overall demand for Russian crude oil fell in December, analysts said this decline was largely due to reduced purchases by Mukesh Ambani. Trust IndustriesIt was a major importer before US sanctions against Lukoil and Rosneft took effect in late November.

Analysts added that state-owned refineries, known as public sector undertakings (PSUs), offset some of this decline in Russian oil.

State-owned Indian firms IOC (Indian Oil Corporation) and BCL (Bharat Petroleum Corporation) “continue to purchase Russian crude for future deliveries through non-sanctioned suppliers,” said Muyu Xu, senior crude oil analyst at tanker tracking firm Kpler.

While BPCL declined to comment, the IOC and Hindustan Petroleum Corporation, India’s Ministry of Petroleum and Natural Gas did not respond to requests for comment, as did CNBC.

India has faced constant pressure from the United States to reduce its oil imports from Russia, an economic lifeline that has enabled it to withstand Western economic sanctions over Moscow’s war against Ukraine.

“Despite total imports declining, PSU refinery’s purchases of Russian crude remain resilient, underscoring a redistribution rather than a collapse in demand,” said Rystad Energy’s Pankaj Srivastava.

Rystad estimates India’s crude imports from Russia have fallen by about 300,000 barrels per day since November, falling sequentially to 1.7 million barrels per day.

However, it was stated that a “modest recovery” to 1.8 million barrels per day is expected in January.

“Public sector refineries continue to process Russian crude with a slight upward trend driven by domestic fuel demand and pricing economics,” said Srivastava, senior vice president of commodity markets at Rystad Energy.

Kpler’s data also showed a decline in India’s imports of Russian oil.

According to Kpler, “India’s imports of Russian crude oil fell by 595 kbpd month-on-month in December to 1.24 mbpd, the lowest level since December 2022.”

I’m talking to journalists on Sunday on Air Force OneTrump said the US could increase customs duties on India if New Delhi does not restrict purchases of Russian oil.