India’s Russian Oil Imports Surge to 1.85 Million BPD in March Amid Sanctions Adjustments

Key Highlights:

• Crude Price Dip: Brent and WTI crude fell by ~0.35%, maintaining downward pressure on global prices.
• Domestic Rates: Bitumen, base oils, and furnace oil show regional pricing stability across India.
• Russian Oil Surge: March imports reached 1.85 million bpd, forming 35% of India’s crude basket.
• Sanctions & Supply Shift: Despite U.S. sanctions, India adapts via non-sanctioned routes and continues leveraging Urals crude.

Crude Oil Price Trends: Brent and WTI Movement

• Crude oil prices declined, with Brent crude currently trading at $71.91 per barrel, down 0.35%. It opened at $72.21 per barrel and closed at $72.16 per barrel yesterday. Similarly, WTI crude is at $68.02 per barrel, falling 0.34% from the previous close of $68.28 per barrel, after opening at $68.36 per barrel today.
• In Panipat, Refinery Bitumen (VG30) is priced at ₹47,262 per metric ton, while in Mathura, Roadgrip Bitumen Emulsion (RS 1) stands at ₹33,810 per metric ton. 
• In Delhi, Base Oil (SN150) is available at ₹67 per kilogram, and Lubriedge Rubber Process Oil (Paraffinic 245) is priced at ₹72 per liter. 
• Meanwhile, in Mundra, Fuel Oil (Virgin 180cST Furnace Oil) is trading at ₹47.5 per kilogram.

India’s Growing Reliance on Discounted Russian Crude

• India’s reliance on Russian crude remains strong, with imports averaging 1.75 million barrels per day (bpd) in Q1 2025, only slightly below the peaks of the past two years. The demand for Russian oil surged in March, reaching 1.85 million bpd, up from 1.47 million bpd in February and 1.64 million bpd in January, according to Kpler data. 
• Russia’s Urals crude continues to be preferred by Indian refiners due to its compatibility with domestic refinery configurations and consistent cost advantages over Middle Eastern alternatives. 
• The ample availability of Russian crude stems from weakened domestic demand in Moscow following Ukrainian drone strikes on multiple refineries. 
• Despite recent U.S. sanctions affecting 183 shadow fleet tankers, India’s import levels rebounded sharply, as Russian crude prices fell below the $60 per barrel price cap, allowing non-sanctioned vessels and Western insurers to participate in shipments.

Geopolitical Shifts and Supply Chain Realignments

• The Biden administration’s sweeping sanctions on Russian oil trade, announced in January 2025, initially disrupted India's procurement efforts. 
• However, March saw a significant recovery, driven by increased availability of Russian crude and alternative supply chain adjustments. 
• Indian refiners swiftly adapted by securing non-sanctioned shipping and insurance services. According to Kpler’s Lead Research Analyst Sumit Ritolia, Urals crude was assessed at $59.9 per barrel in February and $56 per barrel in March, remaining within the G7-enforced price cap. 
• With Russia facing logistical constraints and domestic disruptions, its exports to India have remained steady, contributing to Russian crude comprising over 35% of India’s total import basket in March, up from 31% in February.

Expert View: What’s Next for India’s Oil Strategy?

• India’s Russian oil imports are expected to remain robust unless additional sanctions or geopolitical shifts disrupt trade flows. Refiners will continue leveraging discounted Urals crude, balancing economic and operational efficiencies. 
• While discounts have narrowed, Russian oil remains cost-effective compared to Middle Eastern grades. Future trade dynamics will depend on evolving sanctions policies under the new Trump administration, competitive pricing from West Asian suppliers, and India’s ongoing strategic efforts to maintain diversified energy procurement.