India Now Supplies Petrol to Russia: 2 Reasons Why This Role Reversal Matters
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Russia, once a major fuel exporter, now imports petrol from India, potentially refined from Russian crude, amid refinery attacks and US pressure.
By Pranjal Gupta
New Delhi, August 30: Russia, once a major exporter of crude oil, has now turned to India for petrol after Ukrainian drone attacks targeted several of its refineries. Ship tracking data showed that India emerged as a key supplier of gasoline, or petrol, to Russia.
The development is notable on two fronts. First, the US has imposed punitive measures on India for purchasing crude oil from Moscow, which Indian refiners subsequently process into products such as petrol. Second, the gasoline now being supplied to Russia could potentially have been produced using the same Russian crude that India imported.
Russia's seaborne gasoline imports surged to a record level of around 125,000 barrels per day (kbd) in August, equivalent to a projected 470,000 tonnes for the month, according to energy analytics firm Vortexa.
Indian refiners supplied as much as 1 million barrels of gasoline to Russia over the past two months, trade sources said. Much of the supply came from the Vadinar refinery in Gujarat, operated by Nayara Energy, which is 50 per cent owned by Russian oil giant Rosneft.
Since 2022, India has significantly increased its purchases of Russian crude, making Moscow one of its largest sources of oil. Russian crude serves as a key raw material for producing refined fuels such as petrol and diesel.
India's imports of Russian crude reached a record high in June and July as the conflict in the Gulf squeezed supplies from other sources. India imported more than 2.6 million barrels per day of Russian crude during the two months, compared with around 1 million bpd in February. Russian oil accounted for more than half of India's total crude imports during this period.
This raises the possibility that at least some of the petrol now being exported to Russia was produced using Russian crude.
India, Turkey and Morocco supplied gasoline to Russia in August as Moscow grappled with a widening gap between domestic fuel supply and demand.
Russia extended its full ban on gasoline exports in July, covering both producers and non-producers, until the end of January 2027. Its diesel export ban was extended until September 1, 2026.
Around 55 per cent, or approximately 260,000 tonnes, of Russia's gasoline imports in August arrived on sanctioned vessels, Vortexa said.
"All India-origin gasoline cargoes Russia imported in August were carried on sanctioned fleets and involved dark ship-to-ship (STS) transfers in the Mediterranean," it said.
US Pressure on India for Buying Russian Oil
The Donald Trump-led US administration has not imposed direct economic sanctions on India as a country. However, it has sought to curb India's trade with Russia through secondary sanctions, entity blacklists and tariffs.
As part of its efforts to discourage purchases of Russian energy, the US imposed an additional 25 per cent duty on selected Indian goods, adding to pressure on New Delhi to reduce its reliance on Russian oil.
The latest reversal in the trade relationship between the two countries has not drawn an immediate reaction from Washington. For India, however, the situation has opened up a significant commercial opportunity, with its refiners now supplying petrol to the very country whose crude has been at the centre of US pressure on New Delhi.
