Iraq is likely to re-emerge as India’s top crude oil supplier, as New Delhi works to diversify imports amid pressure from the US.
Russia’s share in India’s crude imports has fallen from recent highs, even as discounted supplies had pushed it to the top spot after the Ukraine war.
Indian refiners are widening sourcing across West Asia and the Americas, including fresh deals with Ecuador and Brazil, to reduce geopolitical risk.
Iraq Seen Emerging as India’s Leading Oil Supplier amid Shift from Russian Crude
Iraq regains its top-supplier of oil position as India looks to diversify crude imports as Washington presses New Delhi to curb reliance on Russian oil
Summary
Advertisement
As India seeks to diversify its crude oil procurement amid continued backlash over its Russian energy imports, Iraq is likely to re-emerge as New Delhi’s top supplier, reports said. Iraq was India’s largest oil supplier from FY2018 to FY2022, before New Delhi turned to discounted Russian crude in the wake of the Russia–Ukraine war.
According to a report by Mint, citing data from Kpler, Iraq supplied 1.06 million barrels per day (mbpd) of crude oil until January 20, compared with 1.10 mbpd from Russia. This comes against the backdrop of New Delhi’s efforts to diversify its crude import basket to reduce dependence on Moscow. India has faced repeated criticism from the US and other European allies over its Russian oil imports.
New Delhi’s accelerated efforts also come amid attempts to roll back a 25% punitive tariff imposed by Washington in August. The US had slapped India with a sweeping 50% tariff — the highest faced by any Asian economy — including the punitive levy, alleging that India’s oil purchases were fuelling the ongoing war between the Kremlin and Kyiv. Reports suggest Europe did not impose any tariff on India, as negotiations for a free trade agreement were ongoing.
Advertisement
New Delhi has maintained that Russian crude imports were crucial for India’s energy security and national interest, even as it works to gradually reduce its reliance on them.
In FY2025, around 35% of India’s crude imports came from Russia, compared with just 2.5% prior to the war. In FY2022, Iraq accounted for nearly 26% of India’s oil imports, the report said.
Amid ongoing trade talks with Washington, West Asia has returned to focus for Indian refiners. India is also looking to diversify suppliers in the Americas. Earlier this month, New Delhi signed its first-ever deal to import Ecuadorian crude for end-March delivery. Meanwhile, Union Minister of Petroleum and Natural Gas Hardeep Singh Puri said last week that state-owned refiner Bharat Petroleum Corporation Limited is set to sign a deal with Brazil’s Petrobras. Apart from West Asia and South America, India is also sourcing oil from Nigeria and Guyana.
Advertisement