Russian oil offered to India at discounted rates amid tariff pressure

Business Standard

a day ago

Russian crude oil is being made available to Indian buyers at lower prices as European Union sanctions and the prospect of penalties from the US dampen demand, according to a report by Bloomberg.
Urals crude cheaper than Dated Brent
The price of Urals, the OPEC+ producer's flagship crude, is currently more than $5 per barrel below Dated Brent, data intelligence firm Kpler stated in a note released on Wednesday. This reflects a notable drop from the near price parity observed two weeks earlier.
Trump doubles tariff on India to 50%
The development amid US President Donald Trump's decision to double tariffs on Indian goods to 50 per cent as a penalty for its continued purchase of Russian oil, intensifying a dispute with New Delhi.
Trump signed an executive order imposing a 25 per cent tariff on Indian imports, which will be added to the 25 per cent levy announced the previous week. The increased duty is set to take effect within 21 days, allowing time for possible negotiations.
India hits back against tariff move
The central government responded sharply to the move, asserting that the imports are essential for India's energy security and criticising Trump for targeting India while other nations also continue buying Russian oil. Opposition leader Rahul Gandhi also condemned Trump, referring to him as a 'bully".
'We reiterate that these actions are unfair, unjustified and unreasonable,' a spokesperson for the Ministry of External Affairs said in a statement. 'India will take all actions necessary to protect its national interests.'
Uncertainty over US action to drive prices lower
Homayoun Falakshahi, Kpler's head of crude oil analysis, stated that the downward trend is likely to continue due to uncertainty surrounding potential US measures. This will encourage a more cautious approach from both state-owned and private refiners. Additionally, planned maintenance at Russian refineries is expected to increase crude supply from August through October.
Indian Refiners unlikely to fully halt Russian oil imports
Kpler noted that despite mounting pressure, it is improbable that Indian refiners will completely cease imports of Russian oil, as substituting Russia's 37 per cent share would be expensive. While state-run firms are considering a temporary pause, private refiners are still securing Russian barrels, though at a reduced pace.
India's crude oil imports from the US have risen to around 225,000 barrels per day since May, almost twice the volume recorded in early 2025.