Due to the ongoing conflict between America and Israel with Iran, oil supplies from the Middle East through the Strait of Hormuz have almost come to a standstill. Due to this disruption, India’s crude oil imports fell 13% in March compared to pre-war levels recorded in February. The special thing is that half of the total imports during this period came from Russia. In other words, amid the supply crisis from the Middle East, oil imports from Russia have served as a lifeline for India.
India—the world’s third-largest oil importer and consumer—imported 4.5 million barrels of crude per day in March, according to data from industry sources. In March, India’s oil imports from Russia almost doubled compared to February, reaching 2.25 million barrels per day. In contrast, supplies from the Middle East fell by a massive 61% to just 1.18 million barrels per day.
The Strait of Hormuz—which normally carries about one-fifth of the world’s oil supplies—has been almost completely blocked since hostilities began on February 28. In the last two months, only a handful of oil tankers have been able to reach India. On Saturday, two Indian-flagged ships attempting to pass through the strait were also attacked.
Huge decline in oil purchases from Iraq and UAE
According to the data, the share of Middle East oil in India’s total crude oil imports fell to a record low of 26.3% in March. Supplies from Iraq and the United Arab Emirates (UAE) have reached their lowest level in many years. To meet the shortage of Middle East oil, Indian refineries have stepped up purchases of Russian oil available in the open sea. These purchases have resumed after the US extended the waiver period on Russian oil. The US had lifted sanctions on Russian oil—primarily to curb rising oil prices due to the ongoing conflict in Iran—and India was the first country to get this waiver, allowing it to buy Russian oil.
On Friday, the Trump administration extended a waiver on Russian oil purchases for another month, allowing countries around the world to buy restricted Russian oil available in the high seas. This exemption has brought great relief to India, and it is expected that imports of Russian oil will continue to increase.
Russia remains the largest supplier; Oil imports from African countries also increased
In March, Russia remained India’s largest oil supplier, while Saudi Arabia overtook Iraq to take second place. According to the data, Indian refineries increased imports from Africa due to supply shortage from the Middle East, pushing Angola to third place. UAE and Iraq were next in the ranking.
Due to decline in imports from the Middle East, the share of OPEC oil in India’s total import basket fell to a record low of 29%. During the fiscal year ending March 2026, India’s Russian oil imports fell by 6.2% compared to the previous year as Indian refineries reduced purchases of Russian oil due to US pressure. However, after the US exemption, there has been a huge surge in oil imports from Russia once again, due to which Russia has again established itself as India’s largest supplier.