Russia’s share in Indian oil imports jumped in March, but discount turned into a premium

The West Asia crisis and the resultant supply constraints have meant that not only has Russia’s share in India’s oil imports jumped once again, but this time India is paying a substantial premium for Russian oil rather than the discount it was earlier enjoying. 

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An analysis by The Hindu of the latest data from the Ministry of Commerce and Industry shows that Russia’s share in India’s oil imports stood at 33.3% or one-third in March 2026, the first months after the West Asia crisis began. Simultaneously, the shares of the Gulf countries as well as the U.S. have fallen. 

However, India is now getting Russian oil at a premium of 2.5% as compared to an average discount of 3.9% it had received earlier in 2025-26. 

Dynamic strategies

In the run-up to the West Asia crisis, India was in the process of cutting back on Russian oil in an effort to align with U.S. interests and push forward a trade deal with that country. In February, Russia’s share had been 25% and before that, in January, it had fallen to a 41-month low of 19%.

However, once the U.S. and Israel attacked Iran on February 28 and Iran retaliated by closing the crucial Strait of Hormuz, India had little choice but to look back to Russia as a major oil supplier. In fact, in early March, the U.S. Treasury Department, too, issued an order to “allow” India to buy Russian oil for a period of 30 days.   

India, of course, has maintained throughout that it retains the autonomy to decide where it imports oil from and how much. 

Russia dependence

The data shows that India substantially cut back on the volume of its overall oil imports in March 2026, likely because about a third of India’s crude oil supplies depended on the Strait of Hormuz. 

Total oil imports came in at 15.8 million metric tonnes (MMT), down nearly 23% over February, and 41% lower than in March last year.

However, out of this, Russia’s share jumped to 33.3% even as its Gulf supplies fell sharply. That is, the combined share of India’s Gulf oil suppliers — Saudi Arabia, UAE, Iraq, Oman, Qatar, and Kuwait — fell to 42.3% in March 2026 from 55% a month earlier. 

Before the U.S. began exerting pressure on India through tariffs and rhetoric to reduce Russian oil purchases, India had been importing Russian oil at a significant discount. 

Government import data shows that India paid an average of $492 per tonne for Russian oil in the first 11 months of 2025-26 as compared to the baseline price of $512 per tonne it paid during that period to all countries it imported from. That worked out to an average 3.9% discount Russia was providing India. 

Russia promises to increase oil, LNG supplies to India

The West Asia crisis, closure of the Strait of Hormuz, and overall economic uncertainty has pushed up the price of oil globally. India’s lack of other options has also meant that Russia has started charging it a premium for oil.

So, while India paid $601 per tonne across imports from all countries in March 2026, the price it paid for Russian oil stood at $616 per tonne that month. That works out to a premium of 2.5%.   

Overall, the amount India paid Russia jumped to $3.2 billion in March 2026, a 30% increase over what it paid in February.