No discounts: Russian crude oil back on tap for India, but at a higher price
Iran war: Indian refiners are buying millions of barrels of prompt Russian crude oil cargoes amid a supply crunch due to the Middle East conflict.
- Mar 6, 2026,
- Updated Mar 6, 2026 11:14 AM IST
While the US allowed a 30-day waiver to India to procure oil from Russia amid the ongoing conflict in Iran, India is expected to pay a heftier price for it. Traders are selling Russian Urals to India at a premium to $4-5 per barrel to Brent on a delivered basis for arrival at Indian ports in March and early April, stated a report. This is in contrast to the discount of $13 per barrel for cargoes traded in February.
According to a report in Reuters, HPCL had bought two cargoes of Russian oil at a $13 discount on February 28 – before the war started.
‘INDIA BUYING MILLIONS OF BARRELS’
Indian refiners are buying millions of barrels of prompt Russian crude oil cargoes amid a supply crunch due to the Middle East conflict. As per the Reuters report, state refiners Indian Oil Corp, Bharat Petroleum Corp, Hindustan Petroleum Corp and Mangalore Refinery and Petrochemicals Ltd are talking to traders for prompt delivery of Russian cargoes. Indian state refiners have bought about 20 million barrels of Russian oil from traders so far, the report added.
One of the traders involved in Russian oil sales to India said that the Indian refiners are back at the market but more than prices, the availability of molecules have become an issue. A Russian embassy official had, meanwhile, said that Russia is ready to fulfill India's energy demands in case of a disruption of energy supply.
Indian refiners have already started tapping Russian oil aboard vessels floating off the country’s coast to make up for the loss of Middle Eastern crude, the report added.
‘30-DAY STOPGAP’
The US Treasury Department granted India a 30-day waiver on Thursday, enabling Indian refiners to purchase Russian oil currently stranded at sea. The move comes after months of Washington urging New Delhi to limit Russian oil imports to restrict financial flows to Moscow during the ongoing Ukraine conflict.
"To enable oil to keep flowing into the global market, the Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil," Treasury Secretary Scott Bessent said.
The waiver applies only to oil that is already at sea, with authorities clarifying that the measure is strictly time-limited. "This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorises transactions involving oil already stranded at sea," he said in a statement.
India had approached the Trump's administration seeking approval to buy Russian crude imports due to the Iran conflict, Reuters stated.
India has crude stocks covering about 25 days of demand, and around 40 per cent of its oil imports coming from the Middle East via the Strait of Hormuz.
India was the leading buyer of Russian seaborne crude following Moscow's 2022 Ukraine invasion, but reduced purchases in January under US pressure in turn bringing down US’ 50 per cent tariffs to 18 per cent.
While the US allowed a 30-day waiver to India to procure oil from Russia amid the ongoing conflict in Iran, India is expected to pay a heftier price for it. Traders are selling Russian Urals to India at a premium to $4-5 per barrel to Brent on a delivered basis for arrival at Indian ports in March and early April, stated a report. This is in contrast to the discount of $13 per barrel for cargoes traded in February.
According to a report in Reuters, HPCL had bought two cargoes of Russian oil at a $13 discount on February 28 – before the war started.
‘INDIA BUYING MILLIONS OF BARRELS’
Indian refiners are buying millions of barrels of prompt Russian crude oil cargoes amid a supply crunch due to the Middle East conflict. As per the Reuters report, state refiners Indian Oil Corp, Bharat Petroleum Corp, Hindustan Petroleum Corp and Mangalore Refinery and Petrochemicals Ltd are talking to traders for prompt delivery of Russian cargoes. Indian state refiners have bought about 20 million barrels of Russian oil from traders so far, the report added.
One of the traders involved in Russian oil sales to India said that the Indian refiners are back at the market but more than prices, the availability of molecules have become an issue. A Russian embassy official had, meanwhile, said that Russia is ready to fulfill India's energy demands in case of a disruption of energy supply.
Indian refiners have already started tapping Russian oil aboard vessels floating off the country’s coast to make up for the loss of Middle Eastern crude, the report added.
‘30-DAY STOPGAP’
The US Treasury Department granted India a 30-day waiver on Thursday, enabling Indian refiners to purchase Russian oil currently stranded at sea. The move comes after months of Washington urging New Delhi to limit Russian oil imports to restrict financial flows to Moscow during the ongoing Ukraine conflict.
"To enable oil to keep flowing into the global market, the Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil," Treasury Secretary Scott Bessent said.
The waiver applies only to oil that is already at sea, with authorities clarifying that the measure is strictly time-limited. "This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorises transactions involving oil already stranded at sea," he said in a statement.
India had approached the Trump's administration seeking approval to buy Russian crude imports due to the Iran conflict, Reuters stated.
India has crude stocks covering about 25 days of demand, and around 40 per cent of its oil imports coming from the Middle East via the Strait of Hormuz.
India was the leading buyer of Russian seaborne crude following Moscow's 2022 Ukraine invasion, but reduced purchases in January under US pressure in turn bringing down US’ 50 per cent tariffs to 18 per cent.