Tariff tension with US hits Indian companies, decides to pause oil import from Russia due to...

India.com

3 days ago

Tariff tension with US hits Indian companies, decides to pause oil import from Russia due to...
Trump Tariff Woes: As Donald Trump's tariffs are haunting several countries, Indian oil refineries are also feeling the heat. Oil refineries such as Indian Oil Corporation, Hindustan Petroleum Corporation, Bharat Petroleum Corporation, and Mangalore Refinery and Petrochemicals have temporarily halted purchases of crude oil from Russia. Notably, India is the biggest buyer of seaborne Russian crude oil. The country ranks third in the world in terms of oil imports.
According to reports, Indian refiners have turned to the Middle East and Africa to purchase oil.
Indian Refiners Quietly Pulling Back On Russian Oil
As per a report by Reuters, citing sources, stated that the state-owned refineries have not imported oil from Russia since last week. However, no response has come from the companies regarding the development.
It is to be noted that four state-owned refiners – IOC, BPCL, HPCL, MRPL – buy Russian oil in bulk but no purchase has been done since last week, Reuters report said, citing sources.
As the supply of crude oil have impacted, these refiners are now looking at the spot market to fulfil their demands. These refiners are now buying crude oil from West Asia and West African oil.
This occurs as the price reductions on Russian oil have decilned, alongside President Donald Trump's caution to nations regarding the acquisition of oil from Moscow.
The report states that Indian refiners are distancing themselves from Moscow's crude oil due to shrinking discounts. The price reductions on Russian crude oil have decreased to their lowest levels since 2022, attributed to reduced exports and consistent demand.
Private Refiners Still Importing Russian Crude Oil
Meanwhile, the private players of the country are still importing the crude oil from Moscow as per their annual agreement with the country. Notably, the discounted rates at which India was buying crude from Moscow since 2022 has declined.
Recently, US President Donald Trump has issued a warning that India could face a 100 percent tariff for buying crude oil from Russia. Starting August 1, he's already set a 25 percent tariff on Indian goods as part of a broader move affecting more than 90 countries.
It is expected that Trump may hit New Delhi with more penalties over its oil trade with Russia.