Russia Loses Ground as India's Top Oil Supplier

India's dependence on Russian oil has become increasingly evident in recent months. According to data from Kpler, India's crude oil imports from Russia are expected to decline to 2.1 million barrels per day (mbpd) in August, down from the record levels of around 2.6 mbpd seen in July and June this year.

This reduction is attributed to refinery maintenance, normalisation after strong buying, lower Russian export availability, and increasing competition from China, according to Sumit Ritolia, senior manager (modelling) at Kpler.

Despite the decline, Russia remains India's largest supplier, accounting for over 40% of the country's imports. The UAE follows closely, with imports of around 611,000 barrels per day (or 611 kbpd).

The shift in supply dynamics is driven by reduced availability from West Asia and a strategic need for diversification. However, this comes at an additional cost due to longer voyages, tighter global availability, and higher freight costs.