Indian oil refiners had paused buying Russian oil earlier this month after US President Donald Trump had imposed a 50% tariff on Indian exports
India’s state-run refiners, Indian Oil Corporation (IOC) and Bharat Petroleum Corporation (BPCL), have reportedly resumed purchases of Russian crude oil for September and October deliveries after discounts widened.
The move marks a return to Russian supplies after a temporary pause. This could tighten availability for China, which had increased its intake during India’s absence.
Both refiners halted Russian oil purchases in July as discounts narrowed, making imports less attractive, according to a Reuters report.
Trump’s Tariff Threats Paused Russian Crude Purchase
Earlier this month, India’s state-run oil refiners reportedly stopped purchasing Russian crude, following mounting pressure from the US.
US President Donald Trump doubled tariffs on Indian exports to 50%, blaming India for indirectly supporting the war by buying oil from Russia.
In a post on Truth Social, Trump claimed India is purchasing large volumes of Russian oil and reselling it on the open market “for big profits.”
“They don’t care how many people in Ukraine are being killed by the Russian War Machine,” he wrote. “Because of this, I will be substantially raising the Tariff paid by India to the USA.”
However, Trump did not threaten other Russian crude buyers like China with high tariffs.
Discounts Lead to Renewed Interest
Discounts on Russia’s flagship Urals crude have widened to nearly $3 per barrel, renewing interest among Indian buyers.
IOC has also diversified its purchases by securing other Russian grades, including Varandey and Siberian Light, according to a Reuters report.
While Indian refiners typically do not comment on their crude import strategy, IOC recently told analysts that it would continue sourcing Russian oil based strictly on commercial and economic considerations.
Meanwhile, China, the largest buyer of Russian crude, has stepped up purchases. In recent weeks, Chinese refiners booked around 15 cargoes of Russian oil for October and November delivery, according to industry analysts and traders.
Stocks In Focus
Indian Oil Corp closed marginally lower at ₹141.95. While it has gained 4% overall so far this year, recent tariff worries and changes to crude purchase led to a 5.2% decline over the past month.
However, retail sentiment for IOC on Stocktwits remains ‘bullish’. It was ‘bearish’ a week earlier. It was also among the top 10 trending stocks on the paltform at market close.
BPCL fell 0.5% to ₹319.80 at Wednesday’s close. While the stock did gain 9.5% year-to-date, its decline over the past month at 6.8% has been more than IOC’s fall during the same period.
Retail sentiment on BPCL remained ‘bullish’ as well.
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