India has made one of its biggest energy pivots in recent memory by buying around 30 million barrels of Russian oil after the US granted a special 30-day waiver allowing the purchase, according to a Bloomberg report.
The move comes as the ongoing war in West Asia has severely disrupted oil supplies to India and other countries.
The near-complete closure of the Strait of Hormuz has rattled energy markets worldwide. The strait has been effectively shut since US and Israeli strikes on Iran began, cutting off a critical artery for oil flowing out of West Asia.
2 March 2026
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Faced with a growing supply gap, Washington had stepped in last week with a temporary solution, a 30-day waiver allowing Indian companies to buy Russian crude.
The waiver covers Russian oil and petroleum products loaded onto ships before March 5, as long as the oil is delivered to India and bought by an Indian company.
Who Bought What
Once the waiver was granted, Indian refiners moved quickly. State-owned Indian Oil Corporation (IOC) purchased around 10 million barrels, while Reliance Industries bought at least as much, according to the report.
Together, the two companies snapped up all available unsold Russian crude in the spot market, oil that had already been loaded onto ships but had no confirmed buyer yet, much of it already sailing through Asian waters.
Russian crude comes in several varieties, including Urals, ESPO, and Varandey grades, and was being offered at a premium of $2 to $8 per barrel above the international Brent benchmark. Before the West Asia conflict, Russian oil typically traded at the same discount.
The report further said that several oil tankers that had been sailing away from India have now turned around and are heading back. Two vessels, the Maylo and the Sarah, had originally signalled Singapore as their destination but have since changed course toward India.
Beyond Oil: LNG, LPG Crisis Deepens
The energy crunch is not limited to crude oil. West Asia supplies roughly 90% of India's LPG needs, and unlike crude oil, India holds no strategic reserves of LPG or LNG, making it far more vulnerable to prolonged disruptions.
QatarEnergy, one of India's key LNG suppliers, has halted production at a major facility due to the conflict. European natural gas prices have already surged nearly 40% in just one week as a result of the supply squeeze.
Higher Bills, Empty Cylinders
The impact is now being felt directly by Indian households and businesses. Domestic cooking gas cylinders now cost around ₹60 more than before, while commercial LPG prices have risen by ₹114.50 per cylinder.
Supply shortages have been reported in major cities including Mumbai and Bengaluru, with some restaurants warning they may have to shut down if the fuel situation does not improve soon.
Additionally, several Indian fertilizer companies have shut down plants or brought forward their annual maintenance schedules after supplies of LNG, the key raw material used to make urea, were cut off due to the ongoing war in West Asia. Among those affected is Indian Farmers Fertiliser Cooperative (IFFCO), India's largest urea producer, according to earlier reports.
