India refiners wait for govt order on Russian oil purchases: Report

Indian refiners are awaiting government directions on whether to continue buying Russian oil after the United States decided to impose fresh 25 per cent tariffs on Indian goods over New Delhi's energy ties with Russia, four industry sources said.

The new duties, aimed at penalising India for its Russian oil imports, come on top of existing tariffs Washington has levied to fix its trade deficit with the South Asian nation. India said the latest US action is "unfair, unjustified and unreasonable."

"So far, we have not been told anything by the government, so we will not stop Russian oil imports," said an official from a private refining company. India, the world's third-largest oil importer and consumer, relies on Russian oil for more than a third of its oil needs.

 

While state refiners have paused imports of Russian oil, private companies Reliance Industries, Nayara Energy, and HPCL Mittal Energy (HMEL) continue to lift Russian oil.

US President Donald Trump has criticised India's Russian oil purchases, arguing they help fund Moscow's war in Ukraine.

If forced to cut Russian imports, Indian refiners are expected to turn to suppliers in the Middle East, Africa and the Americas. Saudi Arabia, India's third-largest oil supplier, has already raised its official selling prices for Asia.

"In anticipation of higher Indian demand, they have kept the prices very strong," said a refining official in India, adding, the markets expect imposition of new tariffs to disrupt existing trade flows in favour of Middle Eastern crude. The additional tariffs are set to take effect in 21 days.

Trump's executive order allows for modifications if Russia or India "align sufficiently with the United States on national security, foreign policy, and economic matters."