Never mind the US drub, India continues to buy oil from Russia; discount seen rising
State-owned refiners—Indian Oil Corp Ltd (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL)—continue to buy oil from Russian suppliers, and negotiations are underway for spot deals, said two people in the know of the developments.
One of the two people mentioned above said that over the past few days, two cargoes of Russian oil had been purchased by Indian refiners with better discounts than usual.
'OMCs (oil marketing companies) are negotiating for Russian oil supplies currently. There is no decision as to go slow or stop Russian oil," said the person mentioned above. "They (Russian supplies) may have declined amid cheaper global oil prices and narrowing discounts in the past, but there is no decision on halting imports from Russia."
'Although discounts have declined from the highs, of late, there has been a spike of around $1 per barrel in discounts in the latest few deals," the person added.
The last two or three cargoes have been booked at a discount of up to $3 a barrel, compared to about $1.7 in the earlier purchases, and it is likely to rise further, even if not significantly, after US President Donald Trump's censure of India for its Russian energy purchases, the person in the know said.
The discounts on Russian oil have narrowed down to single-digit from the high of around $30 per barrel in 2022.
'The deals which are being negotiated now are for deliveries to be made in September. Till then, refiners are already tied up," said the second person in the know of the developments.
There was no response to queries on the issue sent to the petroleum ministry, IOC, BPCL, HPCL and Rosneft till the publishing of this report.
On 30 July, the US President announced a 25% tariff on Indian exports, starting 7 August, along with a penalty for India's energy and defence purchases from Russia, which has been berated for its war with Ukraine.
The punishing announcement had raised concern over energy supply crunch and price increase. Russia exports about 4.5 million barrels of oil daily on an average, and if it goes out of the market global prices may shoot up as was witnessed in 2022, according to experts.
Prashant Vasisht, senior vice-president and co-group head, corporate ratings at ICRA Ltd, said refiners would need to carry out techno-economic feasibility before halting refining of a particular variety of crude oil and completely replacing it with another.
'Of late, prices have seen an uptick due to optimism of completion of the US-European Union (EU) trade deal. However, the demand-supply dynamics will play out, going ahead. Further, if supplies from Russia continue as usual and demand supply dynamics play out, prices may somewhat ease going ahead from the current levels," Vasisht said.
The second person cited above said the supply of Russian oil is not prohibited since it is not sanctioned, as in the case of Iranian and Venezuelan crude, which are sanctioned and are not purchased by Indian refiners.
'The only thing OMCs need to respect, and they have always complied with, is the price cap (of $60 per barrel)," the person said.
The price cap announced by the US and G7 countries in December 2022. The European Union last month announced to lower the cap to about $47 per barrel, which will be implemented starting September.
Russian oil comprises of about 7% of the daily global oil consumption and 36% India's total oil imports. On the back of deep discounts starting February 2022, after its invasion of Ukraine, Russia became the top supplier to India. Earlier, the country catered to only about 2.5% of India's oil import. China and India are top buyers of Russian oil.
Although the US and EU have raised concern over India's oil purhases from Russia, India has maintained that its energy procurement would depend on its needs. India imports over 88% of its crude oil requirement, and has diversified its oil sources to nearly 40 countries in order to ensure energy security.
Responding to the US President's warning of secondary tariffs on countries that import Russian oil, minister for petroleum and natural gas Hardeep Singh Puri had said the country was not overtly worried, and would navigate any eventuality as there was enough supply in the market.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
an hour ago
- The Hindu
Canada airdrops aid into Gaza, says Israel violating international law
Canada said on Monday (August 5, 2025) it delivered humanitarian assistance through airdrops to Gaza, which has been under a devastating Israeli military assault for almost 22 months, with Ottawa again accusing Israel of violating international law. "The (Canadian Armed Forces) employed a CC-130J Hercules aircraft to conduct an airdrop of critical humanitarian aid in support of Global Affairs Canada into the Gaza Strip. The air drop consisted of 21,600 pounds of aid," the Canadian government said in a statement. The Canadian Broadcasting Corporation reported that it was Canadian Armed Forces' first humanitarian airdrop over Gaza using their own aircraft. The Israeli military said 120 food aid packages for Gaza's residents were airdropped by six countries, including Canada. The other five were Jordan, the United Arab Emirates, Egypt, Germany and Belgium. Canada said last week it plans to recognise the State of Palestine at a meeting of the United Nations in September, ratcheting up pressure on Israel as starvation spreads in Gaza. Canada also said on Monday that Israeli restrictions have posed challenges for humanitarian agencies. "This obstruction of aid is a violation of international humanitarian law and must end immediately," Canada's government said. The Israeli embassy in Ottawa had no immediate comment. Israel denies accusations of violating international law and blames Hamas for the suffering in Gaza. Israel cut off food supplies to Gaza in March and then lifted that blockade in May - but with restrictions that it said were needed to prevent aid from being diverted to militant groups. President Donald Trump also claimed Hamas militants were stealing food coming into Gaza and selling it. However, Reuters reported late last month that an internal U.S. government analysis found no evidence of systematic theft by Hamas of U.S.-funded humanitarian supplies. Israel says it is taking steps for more aid to reach Gaza's population, including pausing fighting for part of the day in some areas, allowing airdrops and announcing protected routes for aid convoys. The latest bloodshed in the decades-old Israeli-Palestinian conflict was triggered in October 2023 when Hamas attacked Israel, killing 1,200 and taking about 250 hostages, Israeli tallies show. Gaza's health ministry says Israel's subsequent military assault has killed over 60,000 Palestinians. It has also caused a hunger crisis, internally displaced Gaza's entire population and prompted accusations of genocide at the International Court of Justice and of war crimes at the International Criminal Court. Israel denies the accusations.
Indian Express
an hour ago
- Indian Express
‘Turned Adivasi assertion into a political force that birthed state': Shah to Rajnath, Mamata to Stalin — tributes pour in for Soren
Union Home Minister Amit Shah, Defence Minister Rajnath Singh, Chief Ministers and other leaders across the political spectrum paid tribute to Jharkhand Mukti Morcha co-founder and former Chief Minister Shibu Soren who died Monday. Shah said in a post on X that Soren 'struggled for decades for the rights and empowerment of the tribal community in Jharkhand'. 'With his simple personality and humble nature, he connected with the masses,' Shah wrote. Singh said Soren was counted among the towering leaders of Jharkhand who struggled throughout their lives for the rights and empowerment of the weaker sections of society, especially the tribal community. 'He always remained connected to the land and the people,' he said. West Bengal Chief Minister and TMC chief Mamata Banerjee said Soren's death has brought a chapter of Jharkhand's history to an end. BJP leader and Assam Chief Minister Himanta Biswa Sarma said Soren's life was dedicated to the well-being of the deprived, tribals, and labourers. Tamil Nadu Chief Minister M K Stalin wrote on a social media post, 'Thiru Shibu Soren's life was defined by relentless resistance against exploitation and an unshakeable commitment to social justice. As one of the key architects of Jharkhand's statehood movement, he transformed decades of Adivasi assertion into a political force that gave birth to a new state.' Telangana Chief Minister and Congress leader Revanth Reddy hailed Soren's struggles for the formation of Jharkhand and his efforts to address the problems of tribals. JD(U) leader and Bihar Chief Minister Nitish Kumar said Soren's 'significant contribution to Jharkhand's politics is noteworthy'. 'His passing has caused an irreparable loss not only to Jharkhand but also to the political and social spheres of the entire country,' Kumar wrote. RJD president Lalu Prasad spoke of 'memories of our joint struggles' for achieving 'social justice and empowerment of deprived classes'. Uttar Pradesh Chief Minister Yogi Adityanath said the former Jharkhand chief minister dedicated his life to the upliftment of tribal society. BJD chief and former Odisha CM Naveen Patnaik, said Soren would be remembered for his dedicated fight for the rights of tribal and marginalised people. Meghalaya Chief Minister Conrad K Sangma said Soren was a towering figure in Indian politics and a dedicated statesman who served the people with unwavering commitment.
India.com
an hour ago
- India.com
How The U.S. Rewired Pakistan's Air Force; Why That Legacy Still Matters Against India
New Delhi: When Indian jets pounded Pakistani positions under Operation Sindoor, Islamabad's narrative tried to flip the script. Claims of tactical success echoed through Pakistani media, even as damage reports told a different story. But behind these optics, Pakistani defence analysts are pointing to a system that did not come from China, but from the United States nearly 70 years ago. Defence portal Quwa highlighted how the foundations of Pakistan's air force still rest on operational practices and doctrine handed down by the United States as far back as the 1950s. The report claims that what many today call 'software', mindset, structure and operational culture, was installed in the early days of the Pakistan Air Force (PAF) by American advisors. That legacy has shaped PAF's command philosophy to this day. It even influenced the decision to move the Air Force Headquarters from Rawalpindi to Peshawar, giving the force its own command ecosystem, distinct from the army's shadow. How America Gave PAF Its Operational 'Software' According to Quwa, in the early 1950s, Pakistan's air force lacked both equipment and a professional framework. The turning point came with the 1950 Mutual Defense Assistance Agreement with the United States. Under this, Washington not only provided F-86 Sabre aircraft to Pakistan but also embedded an entire operational doctrine into the PAF. Considered the architect of a modern PAF, then Air Marshal Asghar Khan recognised that the United States was sending jets as well as exporting a full system. This included depot-level aircraft maintenance, rather than the traditional squadron-level model; strict safety regulations, based on U.S. Air Force protocols; and clearly separated departments for operations, maintenance and administration. This model replaced the older British system and gave Pakistan's air force an American-style command structure that is still in use today. According to Quwa, this is the backbone that allows the PAF to integrate foreign fighter jets, including the Chinese J-10CE, into its arsenal smoothly. The report argues that this inherited mindset enables faster pilot adaptation and more coherent training cycles, which translates into better performance during real combat situations. A Quiet Nod to the U.S., Not China While Pakistani media has hyped up the role of Chinese-origin J-10CE fighter jets in countering India's Rafales, Quwa takes a more nuanced position. It suggests that the real enabler was not Chinese technology, but American methodology. The systems laid down decades ago by the United States, it claims, allow the PAF to function as a streamlined and adaptable air force, something its regional rivals have had to build from scratch. This legacy also explains the PAF's ability to quickly operationalise new platforms. Pilots transitioning to newer aircraft often show higher mission-readiness because the doctrine standardises procedures across the force. And it was this very consistency, Quwa argues, that allowed Pakistan to mount any kind of coordinated air response during India's strikes. What Really Happened in the Skies? Despite Pakistan's claims, the outcomes of the recent aerial confrontations tell a more complex story. Islamabad managed to shoot down one Indian aircraft, but failed to intercept or prevent Indian strikes on nine strategic sites in Pakistan-occupied Kashmir (PoK). Indian Rafales inflicted heavy damage. In military terms, Quwa concedes, these results raise questions. One of the contributing factors was a misjudgement by Indian forces regarding the range of China's PL-15 missiles, a gap in calculation that Pakistan used to its advantage. Even then, say Indian analysts, PAF's performance could only be counted as successful if it had prevented India's deep-penetration airstrikes, not merely retaliated after the fact. A Legacy That Still Shapes Air Battles Pakistan's narrative of victory, critics say, may not hold up under scrutiny. But the story that emerges from Quwa's reporting is not about flashy dogfights or headline-grabbing missile launches. It is about how a 70-year-old framework continues to define one of South Asia's most professionalised air forces. In the end, as Quwa puts it, it was not Chinese, but American 'software' (a system of discipline, structure and long-term strategic thinking) that made the real difference.
