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India Steps Up Petrol Supplies to Russia as Refinery Disruptions Deepen Fuel Shortage

India Steps Up Petrol Supplies to Russia as Refinery Disruptions Deepen Fuel Shortage

India has emerged as an important source of petrol for Russia as repeated Ukrainian drone attacks on Russian oil refineries have disrupted domestic fuel production and pushed Moscow to rely more heavily on overseas supplies.

Russian seaborne gasoline imports climbed to a record level of roughly 125,000 barrels per day in August, equivalent to about 470,000 tonnes for the month, according to energy-market tracking data. Indian refiners are estimated to have supplied close to 1 million barrels of gasoline to Russia over the past two months, highlighting the growing importance of Indian refiners in meeting the country’s immediate fuel requirements.

A substantial portion of the Indian-origin fuel is understood to have come from Nayara Energy’s Vadinar refinery in Gujarat. The refinery has a significant Russian connection through Rosneft, which owns a 50% stake in the facility. The development adds another dimension to the increasingly complex energy relationship between India and Russia.

The shift is particularly notable because India has sharply expanded its purchases of Russian crude oil since 2022. Russian crude imports into India exceeded 2.6 million barrels per day during June and July, accounting for more than half of India’s overall crude imports during that period. Some of the petrol now moving from India to Russia may therefore have been produced from Russian-origin crude that was refined in India.

Russia’s need for imported petrol stems from mounting pressure on its refining network. Drone attacks have damaged or disrupted several refineries, reducing domestic gasoline production substantially. Recent industry estimates indicate that Russian output fell to around 70% of domestic demand late in August, creating a sizeable daily supply deficit.

With domestic supplies under pressure, Moscow has also introduced and extended restrictions on fuel exports in an effort to preserve availability inside the country. Russia has extended its diesel export restrictions while maintaining a broader gasoline export ban into early 2027.

India is not the only external supplier filling the gap. Turkey and Morocco have also supplied gasoline to Russia, while neighbouring Belarus and Kazakhstan remain important sources of fuel. However, India’s shipments stand out because of the distance involved and the country’s rapidly expanding role in Russia’s wider energy trade.

The development illustrates how disruptions to Russia’s refining infrastructure are reshaping established energy flows. A country that remains one of the world’s largest crude oil producers is increasingly turning to international markets for refined petrol, while India is simultaneously buying Russian crude, processing it through its large refining network and exporting finished petroleum products.

For India, the situation underscores the strategic value of its substantial refining capacity and its growing position in international petroleum-product trade. For Russia, continued attacks on refineries could mean a prolonged dependence on imported fuels until damaged processing capacity is restored.

 

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