Russian Oil : A grain of salt in India-Russia friendship? Russia hiked oil prices by ending concessions

• Russian oil expensive for India?
• Government will have to buy oil at a premium price
• Petrol-diesel will be expensive?

Russian Oil Price: New Delhi/Moscow: Due to the tension in West Asia, there is currently an atmosphere of concern at the global level. America has lifted the blockade of Hormuz, but Iran has not yet withdrawn. This is still hampering the supply of oil in the world market. Against this background, a big challenge is facing India. India has to pay a huge price for the oil it gets from Russia.

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Changes in Russian oil prices

India, once getting Russian oil at subsidized rates, now has to buy it at a premium. The question is being raised whether this has created tension in the India-Russia friendship. When the Ukraine war started in 2022, Russia sold oil to India at 8 to 10 dollars per barrel.

But now the whole picture has changed. Russia has completely cut off oil concessions as supply chains in the Middle East are disrupted. Currently, India is paying $4 to $5 per barrel more than the benchmark oil price from Russia.

Russia’s share of imports

India imported 33.3% of its total oil from Russia in March 2026 due to US-Iran conflict. India was importing an average of 2 million barrels of crude oil per day in March. Russia was India’s only major support as the oil supply of the Gulf countries stopped. But with Russia ending the concession on oil, the price went up and India had to buy it at a high price.

India’s supply constraints

The West Asian conflict had increased the demand for Russian oil. However, there were many obstacles in the supply. Shipping costs were driven up by Ukraine’s drone attacks on Russian oil reserves, long sea routes and insurance premiums. Due to this there was a decrease in India’s imports.

At present, India has to buy Russian oil at an expensive price. But experts have expressed the possibility of pressure on India’s economy due to rising prices and transport costs. Due to this, India has demanded to open the Strait of Hormuz.

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