New Delhi, August 30: Russia has emerged as a significant petrol export destination for India, with shipments nearing one million barrels over the past two months. This shift is attributed to ongoing attacks from Ukraine on Russian refineries, forcing Russia to import petrol to meet domestic demand. This information comes from a report by the shipping tracking firm Vortexa.
According to the report, Russia’s maritime petrol imports surged to a record 470,000 tons in August. The drone attacks from Ukraine have led to the shutdown of refineries within Russian territory, resulting in fuel shortages and long lines at local filling stations. Domestic fuel production in Russia has plummeted by up to 70%. To address this severe shortfall, Russia has imposed a ban on the export of petrol and diesel.
Vortexa reported that there were 32 attacks on Russian refineries during July and August.
Key suppliers aiding in compensating for the domestic fuel production shortfall include Turkey, Morocco, and Indian refiners. Sources in the trade indicated that most of India’s supply came from Nayara Energy’s Vadinar refinery located on the coast of Gujarat, which has a significant stake from Russia’s major oil company, Rosneft.
Petroleum and Natural Gas Minister Hardeep Singh Puri stated earlier this month that despite uncertainties in global refining capacity, India is solidifying its position as the world’s third-largest refiner, planning to increase its capacity from 272 MMTPA to 300 MMTPA.
Meanwhile, following the onset of the war in Iran and the closure of the Hormuz Strait, India has expanded its sources for crude oil imports. Typically, 20% of the world’s oil and gas exports pass through this route.
Due to ongoing conflicts in the Middle East affecting the Hormuz Strait, India’s crude oil imports from Russia have surged in recent months. In July, Russia accounted for more than half of the country’s total oil imports, surpassing the UAE and Saudi Arabia to become India’s largest crude oil supplier.
According to recent data from shipping intelligence and research firm Kepler, India’s crude oil imports from Russia in August are estimated to be around 2.1 million barrels per day. However, this figure is significantly lower than the record levels of approximately 2.6 million barrels per day observed in June and July.
Despite the decline in August, Russia remains India’s largest supplier, accounting for over 40% of the country’s total imports. Following Russia, the United Arab Emirates (UAE) supplies 611,000 barrels per day, while Saudi Arabia, Venezuela, Nigeria, and Brazil follow with 385,000, 383,000, 129,000, and 120,000 barrels per day, respectively.
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