Indian state refiners resume Russian oil purchases amid wider discounts

India’s state-run refiners, Indian Oil Corporation (IOC) and Bharat Petroleum Corporation (BPCL), have resumed buying Russian oil for September and October delivery, two company officials told Reuters on Wednesday. The move comes after a temporary halt in July and reflects widened price discounts on Russian crude.

The resumption of purchases by Indian refiners could affect supplies to China, which had increased its intake while India paused its imports. IOC and BPCL stopped buying Russian oil in July due to narrower discounts and after criticism from Washington, with U.S. President Donald Trump threatening a 25 percent tariff on Indian goods starting 27 August in response to continued Russian oil imports.

According to the officials, discounts for Russian Urals crude have now widened to about $3 per barrel, making it more attractive to Indian refiners. In addition to Urals, IOC has also purchased other Russian crude grades, including Varandey and Siberian Light.