India’s state-owned oil companies have paused spot purchases of Russian crude after the United States increased tariffs on Indian exports. Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) are skipping their upcoming buying cycle of Russian oil. The decision comes as the companies wait for clear guidance from the Indian government.
Although no official order has been issued, the refiners are taking a cautious approach following U.S. President Donald Trump’s recent move to double tariffs on Indian goods. The new 50% duty came as a warning for India’s continued energy trade with Russia amid the ongoing Ukraine conflict.
The Biden administration has increased its scrutiny of Indian oil imports from Russia. Trump’s new tariffs are seen as a strategic push to cut Moscow’s revenue streams. While China also continues to buy Russian oil, it has not faced the same penalties, raising questions about selective enforcement.
The U.S. action triggered volatility in global oil markets. Brent crude briefly dipped but remained steady around $67 per barrel. Traders are now watching whether India will shift its oil sourcing or resume Russian purchases in future cycles.
Industry experts believe Indian refiners will now look to Middle Eastern and African suppliers to meet demand. Saudi Arabia and Iraq are seen as the most likely alternatives, offering both geographical proximity and similar crude quality.
Private refiners like Reliance Industries and Nayara Energy have remained mostly silent. Nayara, which is partly owned by Russian interests, has already faced operational slowdowns due to European sanctions.
If the pause continues, India could face a higher oil import bill. Analysts estimate an annual increase of $9–11 billion if cheaper Russian crude remains off the table. That could impact refining margins and fuel prices, adding inflationary pressure to an already strained economy.
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With October shipments still under negotiation, the situation remains fluid. For now, India’s refiners are playing it safe, awaiting political clarity as diplomatic and economic tensions rise.
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