Indian refiners are set to ramp up purchases of Russian crude as widening discounts make it increasingly attractive amid global market volatility. With Brent prices hovering near $90 per barrel, Russian grades such as Urals and ESPO are being offered at significant markdowns, enhancing the economics for Indian buyers. Industry sources suggest that state-owned refiners like Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) are negotiating fresh term deals and spot cargoes to capitalize on these favorable differentials.

Despite Western sanctions, Russia remains India’s top crude supplier, accounting for over 35% of total imports. The latest round of discounts—ranging between $6–$8 per barrel compared to Middle Eastern grades—has further strengthened trade flows. Analysts note that the trend underscores India’s pragmatic approach to energy security, balancing geopolitical pressures with domestic refining margins.

As refining demand rises ahead of the festive season, higher Russian inflows are expected to bolster throughput and margins for Indian refiners. However, logistical constraints and payment mechanisms through non-dollar channels remain key watch points.