Indian refineries have restarted the procurement of Russian petroleum due to continued price reductions.
India's foremost government-owned petroleum refining entities, Indian Oil Corp. and Bharat Petroleum Corp., have acquired additional lots of Russian petroleum scheduled for shipment in January 2026.
The refinery’s choice was impacted by a prolonged markdown on Russian raw petroleum. Despite the greater markdown, the agency’s sources predict that overall Russian petroleum inflows in January will not go beyond one-third of average monthly provisions in 2025, or a ceiling of 600,000 barrels each day.
The cost disparity between Russian petroleum and Brent has grown to about $5 per barrel. A month prior, the reduction was approximately $3.
The primary acquirer is still the sanctioned Nayara Energy, partly overseen by Rosneft. It generally comprises over half of India’s aggregate Russian petroleum acquisitions.
Factoring in distribution and markdowns, Russia obtains an average of $40–45 per barrel from these distributions.
Indian Oil Corp. is furthermore anticipating various extra consignments of Russian petroleum in December. For Bharat Petroleum, this constitutes the initial instance of this nature in an extended period; the organization had formerly declined Russian raw petroleum.
Indian refineries are demonstrating a “slight return” to Russian provisions, as organizations intently observe the sanctions landscape and diplomatic parleys between Washington and New Delhi. The subject of Russian petroleum inflows persists as one of the most delicate matters in the discourse.
Concurrently, Indian organizations are endeavoring to broaden their provision origins subsequent to the enforcement of US sanctions opposing Lukoil and Rosneft. Specifically, Indian Oil Corp. procured 2 million barrels of petroleum from Guyana.
Another vessel containing a comparable quantity of non-Russian raw petroleum is projected to discharge at Hindustan Petroleum Corp. installations shortly.
