India’s Russian Oil Imports Dip Amid Sanctions, Supply Costs in Focus
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Petroleum product prices remain stable, with base oil, fuel oil, and specialty oil rates varying by grade and packaging. Russian crude exports to India declined due to US sanctions, raising concerns over rising costs. Indian refiners are negotiating deeper discounts, while long-term supply agreements remain uncertain amid evolving global trade policies.
Key Highlights:
- Price Overview: Base oil prices range from ₹61.5/L to ₹118/KG, with variations across bulk and barrel packaging. Fuel oil prices remain steady.
- Trade Shift: Russian crude exports to China surpassed India’s for the first time since 2023, as Indian refiners reduced sanctioned oil purchases.
- Industry Developments: India is pushing for $5-6 per barrel discounts on Russian oil while exploring new supply agreements amid rising import dependency.
- Market Outlook: Russian crude shipments to India may recover, but supply chain uncertainties and global sanctions could influence future trade flows.
Petroleum Price Overview & Market Rates
- Base Oil prices vary depending on the grade and packaging type.
- Bulk-packed prices are as follows:
a. N150 is priced at ₹63.5/L
b. 4cST at ₹76/L
c. SN150 at ₹61.5/L
d. N500 at ₹96.5/KG
e. N220 at ₹73/L
f. SN500 at ₹85/KG
g. N70 at ₹63.5/L
h. N60 at ₹66/L
i. 8cST at ₹74/L - Barrel-packed prices are as follows:
a. N150 is ₹69.5/L
b. BS-150 at ₹118/KG
c. SN150 at ₹68/KG
d. SN500 at ₹90/KG
e. N500 at ₹103/KG
f. 4cST at ₹76.72/KG. - Fuel Oil pricing includes Virgin 180cST Furnace Oil at ₹47.5-49/KG and Low Sulphur Heavy Stock (LSHS) at ₹56.5/KG.
- Rubber Processing Oil prices range from ₹44.5/KG to ₹84/L depending on brand and type. Hydraulic Oil prices are between ₹87-100/L for barrels and buckets.
- Rust Preventive Oil prices range from ₹122-149/L based on type.
- Gear Oil prices are between ₹115-134/L for different grades and packaging.
Global Trade Shifts & India’s Supply Dynamics
- Russian crude oil exports to China have overtaken shipments to India for the first time since December 2023. In the first 10 days of March, Russian crude loadings to India were around 590,000 barrels per day (bpd), significantly lower than China’s 1.14 million bpd.
- This shift comes amid fresh US sanctions on Russian oil, leading Indian oil marketing companies (OMCs) to avoid crude from sanctioned entities. India, which has relied on discounted Russian crude to meet rising energy demand, had recorded higher imports of 1.6 million bpd in February, compared to China’s 1.1 million bpd.
- The drop in shipments raises concerns about a potential increase in India’s oil import costs. While India has been negotiating term deals with Russia for a more stable supply, state refiners have struggled to secure long-term agreements. Despite the current dip, Russian oil loadings for India may recover later in the month.
Industry News & Policy Developments
- The decline in Russian oil exports to India follows the US imposing sanctions on major Russian oil producers, tankers, and shipping networks in January 2025. Indian refiners, including IOCL, BPCL, and HPCL, have since adopted a cautious approach, opting for non-sanctioned crude suppliers.
- While India has become a key buyer of Russian oil since 2022, state-run refiners are now pushing for deeper discounts of $5-6 per barrel on term deals. As of early 2025, India has spent €112.5 billion on Russian oil imports, while China’s purchases total €170 billion.
- India and China are implementing distinct strategies to manage short-term crude oil supply disruptions, adjusting their trade flows in response to global sanctions on Russia.
- To boost investments in oil and gas exploration, the Oilfields (Regulation and Development) Amendment Bill, 2024, has been approved, enabling Oil India to pursue international collaborations for deepwater projects. Meanwhile, India’s crude oil import dependency has risen to 89% in FY24, with domestic production declining by 3% annually since FY17.
Market Outlook & Expert Insights
- Russian crude oil shipments to India may rise in the coming weeks as refiners adjust procurement strategies. While immediate supply constraints exist, the demand for discounted Russian oil remains strong.
- With India's energy needs growing, traders anticipate increased spot market activity and potential pricing adjustments in the near term. However, uncertainties around sanctions and global oil dynamics could influence future trade flow.
Daily Market Report
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