The move comes amid remarks by US leaders suggesting that India had agreed to scale back purchases of Russian oil under the broader trade framework. While New Delhi has not publicly confirmed any such commitment, it has reiterated that energy sourcing decisions will be guided by national interest and market dynamics.
Officials said state-run refiners — including Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) — have been encouraged to prioritise US crude when buying from the spot market through tenders. The government has also indicated openness to importing Venezuelan crude, largely through private negotiations with global traders.
India has significantly increased Russian oil imports since 2022, attracted by discounted prices following Western sanctions on Moscow. However, the latest push reflects a broader strategy to diversify supply sources and strengthen strategic ties with Washington.
Industry experts caution that scaling up American imports presents logistical and technical challenges. Most Indian refineries are configured to process medium to heavy-sour crude, such as that sourced from Russia and parts of West Asia. US crude is typically light and sweet, with lower sulphur content, requiring operational adjustments at some facilities.
Freight costs pose another constraint. Shipping crude from the US Gulf Coast to Indian ports involves longer routes and higher transportation expenses compared with supplies from closer producers in West Asia, Kazakhstan or Africa. Elevated freight rates could affect the price competitiveness of US barrels.
Despite these hurdles, refiners are exploring opportunities. Government firms have recently purchased around 4 million barrels of Venezuelan crude, while private major Reliance Industries has also resumed Venezuelan imports after a pause. India had halted Venezuelan purchases in 2019 following US sanctions but resumed limited buying in 2024 after partial easing of restrictions.
In 2024, Indian imports from Venezuela averaged between 63,000 and 100,000 barrels per day. In 2025, purchases reportedly rose to about $1.41 billion before renewed US restrictions tightened trade flows again.
India currently imports roughly 225,000 barrels per day from the US. Officials say this could rise to nearly 400,000 barrels per day, subject to pricing and geopolitical considerations.
The Petroleum Ministry and state refiners have declined to comment publicly. Analysts note that India’s balancing act between cost efficiency, refinery compatibility and diplomatic ties will shape its crude sourcing strategy in the months ahead.
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