India is increasing US crude imports amid Donald Trump’s 50% tariffs, with IOC and other refiners securing major deals. However, India continues to expand Russian oil purchases, balancing trade ties and maintaining its energy independence.
Indian refiners have stepped up their purchases of US oil in August, driven by competitive prices. The move comes as the Donald Trump administration has imposed 50% tariffs on Indian goods exported to the US. According to a Reuters report, the increased oil buying could help reduce India’s trade imbalance with the United States at a time of strained relations.
IOC secures large US oil deals
Indian Oil Corporation (IOC), the country’s largest refiner, has bought five million barrels of US West Texas Intermediate (WTI) crude through a tender process for delivery in October and November, sources told Reuters. Earlier this year, IOC also procured seven million barrels of WTI crude for delivery between April and May, per the report.
Trading sources told The Times of India said European traders Gunvor and Equinor each supplied two million barrels, while Mercuria provided one million barrels to IOC. Bharat Petroleum Corporation Ltd (BPCL) also acquired two million barrels of WTI crude. Meanwhile, Reliance Industries obtained another two million barrels of WTI crude through Vitol.
Diversification of crude sources
BPCL has also bought Nigerian Utapate oil for the first time, reflecting India’s efforts to diversify its crude supplies. Indian refineries, like their Asian counterparts, are increasing US crude purchases as prices have become more attractive for Asian markets.
India stays firm on Russian oil
Even with rising US imports, India has made clear that it will continue buying Russian crude. External affairs minister S. Jaishankar strongly rejected US criticism over India’s Russian oil purchases. “It’s funny to have people who work for a pro-business American administration accusing others of doing business. If you have a problem buying oil or refined products from India, don’t buy it. Nobody forces you to buy it. Europe buys, America buys, so if you don’t like it, don’t buy it,” Jaishankar said.
Russian oil imports to rise in September
After Western sanctions on Moscow in 2022, India became one of the largest buyers of Russian crude, benefiting from discounted prices. Sources told Reuters that Indian refiners plan to boost Russian oil imports in September by 10-20% compared to August volumes. This would mean an additional 150,000-300,000 barrels per day.
Peter Navarro slams India over Russian oil trade and tariffs
Peter Navarro, Senior Counselor for Trade and Manufacturing at the White House, launched a sharp attack on India over its oil trade with Russia and tariffs on US goods. Navarro, seen as the driving force behind President Donald Trump’s recent 50% tariffs on Indian imports, accused India of unfair trade practices and of helping fund Russia’s war in Ukraine. In a post on X, he said the tariffs were meant not only to counter India’s high trade barriers but also to stop the “financial lifeline” that India had extended to Russian President Vladimir Putin.
Navarro claimed that before Russia’s invasion of Ukraine, Russian oil was less than 1% of India’s imports, but now it exceeds 30%, or more than 1.5 million barrels per day. He alleged that Indian refiners buy cheap Russian oil, process it, and export fuels worldwide, turning India into a “refining hub and oil money laundromat for the Kremlin.” According to Navarro, India exports over 1 million barrels per day in refined petroleum, with proceeds benefiting politically connected Indian energy companies and flowing into Putin’s war chest. He added that while the US funds Ukraine, India profits from Russia, worsening America’s $50-billion trade deficit with India.
(With agency inputs)