Russia Seeks More Indian Petrol As Ukraine Strikes Keep 40% Refining Capacity Shut

Russia has approached Indian refiners for more petrol on top of shipments already received, as Ukrainian strikes continue to disrupt the country's refining capacity, triggering the country's worst gasoline shortage, according to a Reuters report.

Russia sells the largest share of its seaborne crude oil to India, making this request for additional Indian fuel an unusual reversal in the two countries' energy relationship.

At least one cargo of Indian petrol has already been shipped to Russia, with more expected, according to news agency Reuters. Nearly 40% of Russia's refining capacity is unlikely to resume operations for at least two months if there are no further attacks, the report added citing sources.

Russian Firms Approach Indian Refiners

Rosneft, Gazprom Neft and Lukoil are among the Russian companies that have contacted Indian refiners, both private and state-run, seeking gasoline supplies. Any deals reached would likely be routed through traders, the report said.

Sources at three Indian state refiners told Reuters that Russian firms had approached them, but that they currently have no surplus gasoline to export.

Further Indian supplies could reach Russia through ship-to-ship transfers, the report added. Russia may also seek diesel if Ukrainian strikes damage additional refining capacity, though current diesel supplies remain sufficient.

Earlier Reports On Indian Fuel Shipments

This development follows an earlier Reuters report that Indian refineries had dispatched large petrol shipments to Russia, including at least 60,000 metric tonnes of gasoline carried on two tankers of 30,000 to 40,000 tonnes each. The report did not identify which Indian refiner was involved.

However, Petroleum Minister Hardeep Singh Puri had responded to that report by noting that any Indian-origin fuel reaching Russia may have passed through intermediaries rather than being sold directly by Indian companies.

A day later, the news agency reported that traders had sold petrol made by Nayara Energy, India's largest private fuel retailer and partly owned by Rosneft, to Russia. This came days after Nayara Energy cut petrol prices in India by ₹5 a litre and diesel prices by ₹3 a litre at its nearly 7,000 fuel stations, effective July 1.

Fuel Shortage Across Russia

Petrol pumps across Russia's 11 time zones are running dry, with drivers queuing for hours, prices at record highs, and fuel rationed in several regions, according to earlier media reports.

Kpler analyst Nikhil Dubey earlier told Outlook Business that Russia's installed refining capacity, at around 7.5 million barrels per day, should typically be sufficient to meet domestic demand. However, sustained Ukrainian drone strikes have damaged key parts of the refining network, particularly catalytic cracking and hydrocracking units used to convert crude oil into petrol and diesel.

"These units are highly sophisticated and typically require lengthy repairs when damaged. Consequently, although Russia's overall installed refining capacity remains sufficient to meet domestic demand, the loss of these key processing units has constrained the production of transportation fuels, contributing to the current fuel shortages," Dubey had said.

Previously, President Vladimir Putin had also acknowledged the fuel shortages, telling government ministers and other officials that Ukrainian drone strikes on oil refineries had disrupted supplies in some regions, though he said Russia was managing the situation.