Indian Refiners Slash Russian Crude Imports to Multi-Month Lows Despite Discounts

The Centre for Research on Energy and Clean Air (CREA) has reported that India's imports of Russian crude oil by state-controlled refiners saw a significant downturn in September 2025, hitting their lowest volume since May 2022. This decrease in purchases by government entities was notable, falling by 38% month-on-month, despite Russia widening its discounts on crude oil cargoes. The average price of Urals crude was $62.3 per barrel in September, and the discount against Brent crude rose to over $5 per barrel, a 39% increase month-on-month. This trend may have been influenced by the implementation of the EU-agreed lower price cap of $47.6 per barrel for Russian oil. Overall, India imported approximately 1.58 million barrels per day of crude oil from Russia in September 2025, a 7% decrease month-on-month and a 17% decrease year-on-year. Despite this drop in crude oil, India remained the second-largest buyer of Russian fossil fuels, with total imports valued at €3.6 billion, comprising 77% crude oil, 13% coal, and 10% oil products. The reduction in Indian demand contributed to Russia's fossil fuel export revenues declining by 4% month-on-month to €546 million per day, the lowest since the full-scale invasion of Ukraine.

Impact This development impacts India's energy import strategy, potentially leading to diversification efforts and influencing global oil trade dynamics. It also affects Russia's revenue streams from energy exports. Rating: 7/10

Difficult Terms CREA: Centre for Research on Energy and Clean Air, an independent research organization that analyzes energy and environmental issues. Crude Oil: Unrefined petroleum that is processed into various fuels and products. Moscow: Refers to the Russian government or the country of Russia in the context of its exports. Urals: A specific grade of Russian crude oil, commonly used as a benchmark for Russian oil pricing. Price Cap: A maximum price set by governments or international bodies on a commodity, in this case, Russian oil, to limit export revenues. Fossil Fuels: Natural fuels such as coal or gas, formed in the geological past from the remains of living organisms. m-o-m: Month-on-month, indicating a comparison between the current month's data and the previous month's data. y-o-y: Year-on-year, indicating a comparison between the current period's data and the same period in the previous year. mb/d: Million barrels per day, a standard unit for measuring the flow rate of oil. Seaborne: Transported by sea.