Russian oil premium jumps 425% as India increases purchases

Russia strengthened its position as India's largest crude oil supplier in April 2026, with its share of the country's oil import bill climbing to an 11-month high as geopolitical tensions in West Asia continued to reshape global energy trade flows.

The Hindu quoting data from the Ministry of Commerce and Industry reported that Russia accounted for nearly 38 per cent of the value of India's crude oil imports in April, even as the premium India paid for Russian oil rose sharply.

The figures indicate that India's reliance on Russian crude increased despite a significant change in pricing dynamics. What was once discounted oil has increasingly become more expensive than India's average import basket.

India imported nearly 67 lakh tonnes of crude oil from Russia in April, a rise of 27 per cent compared with March. Russian supplies accounted for 34.3 per cent of India's total crude imports by volume during the month.

The increase came as India's overall crude imports rebounded after a temporary decline in March following disruptions linked to the West Asia conflict. Total crude oil imports rose to 195.3 lakh tonnes in April from 158.5 lakh tonnes a month earlier.

However, the recovery in volumes was accompanied by a steep increase in costs. India's total crude import bill surged 61.3 per cent month-on-month to $15.4 billion, reflecting the impact of elevated global oil prices.

Russian crude imports alone were valued at approximately $5.8 billion during April, representing 37.7 per cent of India's total oil import expenditure.

The most striking development was the sharp increase in the premium paid for Russian oil. India paid an average of $864.9 per tonne for crude sourced from Russia during April, compared with an average of $787.1 per tonne for crude imported from all countries.

This translated into a premium of $77.8 per tonne for Russian oil, significantly higher than the premium of $14.8 per tonne recorded in March. The increase represents a rise of more than 425 per cent in just one month.

The shift marks a notable change from the discounts that Russia had offered Indian refiners following Western sanctions and the disruption of traditional energy trade routes after the Ukraine conflict.

While Russia's share expanded, imports from the United States continued to decline.

The US accounted for only 2.9 per cent of India's crude oil import bill in April, its lowest share in eight months. In volume terms, American crude represented 3.8 per cent of total imports, also the weakest level in eight months.

The latest figures underscore how the ongoing instability in West Asia and evolving global energy markets are influencing India's crude sourcing strategy. Despite higher costs, Indian refiners have continued to increase purchases from Russia, highlighting the country's growing importance in India's energy security framework.

The trend also reflects the challenges facing India as rising oil prices put pressure on the country's import bill, inflation outlook and current account balance at a time of heightened global uncertainty.