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Sources say that India refiners are waiting for a government order to purchase Russian oil.

Four industry sources say that Indian refiners await government instructions on whether they should continue to buy Russian oil, after the United States imposed new 25% tariffs on Indian products over New Delhi’s energy ties to Russia.

The new duties are meant to penalise India for its Russian Oil imports. They come on top existing tariffs Washington levied in order to correct its trade deficit with South Asia.

India called the latest U.S. actions "unfair, unreasonable and unjustified."

An official of a private refinery company said, "We haven't heard anything from the government so we won't stop Russian oil imports."

India, which is the third largest oil consumer and importer in the world, depends on Russian oil to meet more than one-third of its oil requirements.

State refiners have halted the imports of Russian crude oil. However, private companies Reliance Industries (Reliance), Nayara Energy and HPCL Mittal Energy(HMEL) continue lifting Russian oil.

Donald Trump, the U.S. president, has criticised India for its Russian oil purchases. He argues that they are helping to fund Moscow's conflict in Ukraine.

Refiners in India are likely to look to Middle East, African and American suppliers if they're forced to reduce their Russian imports. Saudi Arabia, India’s third largest oil supplier, raised its official prices for Asia.

In anticipation of increased Indian demand, they kept the prices strong," said an official from a refinery in India. The markets are expecting new tariffs that will disrupt current trade flows and favor Middle Eastern crude.

In 21 days, the additional tariffs will come into effect.

Trump's executive orders allows for changes if Russia and India "align themselves sufficiently with the United States in national security, foreign policies, and economic issues."

(source: Reuters)