Indian Refiners Secure Russian Crude Amid Gulf Supply Shock

Updated: March 05, 2026 23:36

Image Source: Financial Express

On March 5, 2026, Indian refiners began purchasing millions of barrels of Russian Urals crude oil from vessels floating off the country’s coast. The move comes as the Iran–Israel war disrupts Gulf oil flows, leaving India vulnerable to supply shocks. Officials confirmed contingency plans to stabilize energy security.

India, the world’s third-largest oil importer, is facing a severe energy challenge as the Strait of Hormuz remains disrupted due to escalating conflict in West Asia. With Middle Eastern crude supplies sharply reduced, refiners have turned to Russian cargoes already floating near Indian waters.

According to tanker-tracking data from Kpler and Vortexa, at least two vessels carrying 1.4 million barrels of Russian Urals crude diverted to Indian ports this week. Government and industry sources estimate that refiners are tapping into a floating buffer of nearly 25 million barrels of Russian oil positioned off the coast.

India has historically relied on the Gulf for nearly 90% of its crude imports, but the current crisis has forced a pivot back to Russian supplies. Officials confirmed that state refiners and private companies are coordinating purchases to ensure continuity of fuel supply.

The government is also considering export restrictions on petrol and diesel and LPG rationing as part of a broader contingency plan if disruptions persist.

Key Highlights

Indian refiners are buying millions of barrels of Russian Urals crude to offset Gulf supply losses.
At least 1.4 million barrels have already been diverted to Indian ports this week.
A floating buffer of 25 million barrels of Russian crude is positioned offshore for immediate use.
India imports nearly 90% of its crude oil, making it highly vulnerable to Gulf disruptions.
The government is weighing export caps and LPG rationing to manage domestic demand.
The purchases mark India’s renewed reliance on Russian oil, a trend seen since Moscow’s 2022 Ukraine invasion.

Conclusion

India’s decision to buy millions of barrels of Russian crude underscores the fragility of global energy supply chains amid geopolitical crises. By tapping into floating Russian cargoes, Indian refiners are securing short-term stability, but the situation highlights the urgent need for diversified energy sources and strategic reserves to withstand future shocks.

Sources: The Financial Express, Reuters (U.S. News), News18, Times of India, The Hindu BusinessLine

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