New Delhi, India | April 2026
India’s crude oil imports declined significantly in March as disruptions in the Strait of Hormuz altered global supply flows. The shift has led to a sharp change in sourcing patterns, with traditional Gulf suppliers losing share while Russia emerged as the dominant contributor to India’s crude basket.
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| Oil tankers and refinery infrastructure highlight India’s shifting crude sourcing strategy as disruptions in key shipping routes reshape global energy flows. |
Imports Fall Amid Supply Disruptions
Total crude imports dropped by nearly 15 percent compared to February, reflecting the impact of logistical disruptions in one of the world’s most critical oil transit routes. The Strait of Hormuz, through which a large portion of India’s oil imports pass, witnessed significant disturbances, affecting shipment flows from major Gulf producers.
The decline highlights the vulnerability of India’s dependence on specific regions for energy supplies. As a result, refiners were forced to quickly adjust their procurement strategies and explore alternative sources to maintain supply stability.
Russia Becomes Primary Supplier
Russia emerged as the largest supplier of crude oil to India during March, with shipments rising sharply compared to the previous month. This increase marks a strong recovery after a period of declining volumes, positioning Russia as the dominant player in India’s import mix.
The surge in Russian imports reflects a combination of competitive pricing and availability, making it an attractive option for Indian refiners. Market analysts expect this trend to continue in the near term, especially as global supply uncertainties persist.
Sharp Decline in Gulf Supplies
Traditional suppliers from the Gulf region experienced a steep drop in both volume and market share. Imports from key countries such as Iraq, Saudi Arabia, and the United Arab Emirates declined significantly, reflecting the broader impact of disruptions in regional supply chains.
The reduction in Gulf imports underscores the challenges posed by geopolitical and logistical factors. It also highlights the need for diversification in sourcing to reduce dependence on a single region.
Diversification Toward New Sources
To offset the decline in Gulf supplies, Indian refiners increased imports from alternative regions, particularly Africa and Latin America. Shipments from countries such as Angola, the Republic of the Congo, and Gabon rose significantly, indicating a strategic shift in procurement patterns.
Additional inflows from countries like Ecuador and Libya further supported supply stability. While imports from the United States saw a slight decline, the overall diversification effort reflects India’s ability to adapt quickly to changing global conditions.
Shift in Crude Pricing Framework
The evolving import pattern has prompted changes in how India benchmarks crude oil prices. Authorities have revised the composition of the crude basket to better reflect the increasing share of non-Gulf and sweet crude imports.
This adjustment marks a significant shift in India’s pricing framework, aligning it with current sourcing trends and ensuring a more accurate representation of market realities. The move is expected to improve transparency and adaptability in the country’s energy strategy.