Energy Gulf share of India oil market slides on Russia gains By Eva Levesque April 23, 2025, 3:35 PM Alamy via Reuters A Russian oil rig in the Caspian Sea. India's increasing reliance on cheaper Russian oil erodes the dominance of traditional Middle Eastern suppliers like Saudi Arabia and Iraq India buys 36% of its oil from Russia Saudi imports drop to 14-year low Exploring joint refinery projects India’s pivot toward discounted Russian crude oil has accelerated, eroding the dominance of traditional Middle Eastern suppliers in one of the world’s fastest-growing oil markets. In the Indian fiscal year ending March 31, Russia retained its position as India’s top oil supplier for a third year in row, Reuters reported, based on ship tracking data from industry sources it did not identify. Russia’s share of Indian oil imports rose more than 7 percentage points to 36 percent of total, driven by lower-cost barrels amid Western sanctions on Moscow over its war in Ukraine. Conversely, Opec’s share of sales to the world’s most populous nation fell to 48.5 percent as refiners trimmed purchases from Saudi Arabia, Iraq and the UAE – which previously accounted for around 60 percent of India’s crude supply. UAE loses out as India opts for cheaper Russian naphtha UAE and India to develop energy hub in Sri Lanka GCC-India trade tumbles as New Delhi snaps up Russian oil Imports from Saudi Arabia — once India’s top supplier — dropped to a 14-year low as a result of higher official selling prices. Iraqi sales to India hit a four-year trough, reducing the Middle East’s overall share. “Saudi Arabia will remain a close partner in our energy security,” Indian Prime Minister Narendra Modi told Arab News during a visit to Saudi Arabia this week. “Our energy cooperation is not limited to mere buyer-seller relationships. We are exploring joint projects in refineries and petrochemicals.” Saudi Aramco is in talks to invest in refineries in India to secure long-term offtake for its crude, echoing its strategy in China. Reliance Industries, India’s largest refiner, imported 532,700 barrels per day of Russian crude in March, up 17 percent from February. Russian oil made up nearly half of Reliance’s overall imports that month, backed by Russia’s Rosneft deal to supply almost 500,000 bpd. Saudi and Emirati imports each dropped 35 percent year on year. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
