India’s imports of Russian crude oil climbed to a record 2.8 million barrels per day (mbd) in July, reinforcing Moscow’s position as the country’s largest oil supplier. The surge came amid growing geopolitical tensions in West Asia, where renewed concerns over the Strait of Hormuz have prompted India to strengthen its energy security strategy.
While Russia dominated crude oil shipments, the United States remained India’s leading supplier of Liquefied Petroleum Gas (LPG), accounting for the bulk of the country’s LPG imports during the month.
Russia Accounts for More Than Half of India’s Crude Oil Imports
According to the latest data, Russian crude made up more than 50% of India’s total oil imports in July, with shipments touching an all-time high of 2.8 million barrels per day.
The increase marks the highest level of Russian oil imports since India began purchasing discounted crude from Moscow following the outbreak of the Russia-Ukraine conflict in 2022.
The record imports also come at a time when the issue has attracted international attention, particularly from the United States, which has urged India to reduce its dependence on Russian energy supplies.
US Continues to Lead India’s LPG Imports
Although Russia remained India’s largest crude oil supplier, the country’s LPG imports continued to be dominated by the United States.
Out of approximately 1.2 million tonnes of LPG imported in July, more than 900,000 tonnes were sourced from the US, highlighting India’s continued effort to diversify its energy basket across different fuel categories.
West Asia Tensions Influence Global Energy Markets
The rise in Russian imports coincided with escalating tensions in West Asia following renewed friction between the United States and Iran.
The Strait of Hormuz, one of the world’s most strategically important maritime routes, remains a critical passage through which nearly 20% of global oil and gas supplies are transported. Concerns over potential disruptions in the region have encouraged energy-importing nations like India to secure stable supply sources.
Russian Supplies Seen as Reliable Amid Geopolitical Uncertainty
India had already imported 2.8 million barrels per day from Russia in June, accounting for 55.5% of its crude oil imports that month.
Energy market analysts believe Russia has remained a dependable supplier despite global uncertainties.
According to Nikhil Dubey, Lead Analyst at Kpler, geopolitical tensions surrounding the Strait of Hormuz and the Bab el-Mandeb Strait have reinforced Russia’s importance as a reliable energy partner for India.
He also noted that continued drone attacks on Russia’s refining infrastructure have reduced domestic refining activity, leaving larger volumes of crude oil available for export, which has helped sustain shipments to India.
Discounts on Russian Oil Narrow
Despite strong imports, price advantages have begun to shrink.
Market reports indicate that discounts on Russia’s Urals crude supplied to India have narrowed compared to the dated Brent benchmark, primarily because of tightening supplies and rising demand in global markets.
India Prioritises Energy Security Through Diversification
India has consistently maintained that its energy procurement decisions are guided by national interests and energy security.
The government continues to pursue a diversified import strategy by sourcing crude oil, LNG and LPG from multiple regions, including the United States, Brazil, Guyana and several African countries. This approach is aimed at reducing dependence on any single supplier or vulnerable maritime trade route.
As global geopolitical risks continue to influence energy markets, India’s balanced sourcing strategy remains focused on ensuring affordable, uninterrupted and secure energy supplies for its population of more than 1.4 billion people.