India s state-run refiners are facing challenges as Russian oil becomes more expensive and less accessible due to higher freight rates and US sanctions. The attacks in the Red Sea by Houthi rebels have disrupted fuel trade, impacting Indian refiners and potentially eroding their competitive edge.
India, one of Asia’s biggest crude importers, emerged as a huge buyer of Russian cargoes following Moscow’s invasion, with refiners taking shipments shunned by processors in Europe and the US.
In its last review on December 18, the government had sharply cut the windfall profit tax on crude oil produced in the country to Rs 1,300 per tonne from Rs 5,000 earlier. The export duty on diesel was also cut from Re one per litre to 0.50 while that on ATF was hiked from nil to Re one.
Refiners in India are paying a significant premium for Russian oil, highlighting the importance of the market to Moscow and raising concerns about the effectiveness of the G-7 imposed cap on Russian oil prices. Indian refiners paid an average of $86 a barrel for Russian shipments in August, the widest spread since the cap was introduced. The cap is designed to limit the Kremlin s crude-based income while allowing Russian flows on the global market.
Refiners in India are paying a significant premium for Russian oil, highlighting the importance of the market to Moscow and raising concerns about the effectiveness of the G-7 imposed cap on Russian oil prices. Indian refiners paid an average of $86 a barrel for Russian shipments in August, the widest spread since the cap was introduced. The cap is designed to limit the Kremlin s crude-based income while allowing Russian flows on the global market.