India’s crude oil import dynamics are shifting amidst evolving trade and geopolitical landscapes. In February 2025, as US sanctions impacted Russia’s seaborne oil cargoes, Indian refiners turned to countries such as Argentina, Algeria, Gabon, Libya, and Congo for the first time in six months, according to trade numbers from global data provider Kpler.
The diversification of crude oil import sources is part of India’s long-term strategy to explore new procurement avenues and potential investments by domestic E&P firms in regions with untapped hydrocarbon resources, a top government official emphasized. For example, India imported Argentina’s Medanito, a light sweet grade similar to the US’ West Texas Intermediate, and Gabon’s Etame, a heavy-to-medium grade that can serve as an alternative to Venezuela’s Merey.
Prime Minister Narendra Modi’s visits to Nigeria, Brazil, and Guyana in November 2025 highlighted India’s push to diversify energy sources and expand partnerships in hydrocarbon trading. Oil Minister H S Puri noted India’s expansion of crude procurement sources from 27 to 40, with Argentina being the latest addition. In the last six months, India imported crude from African countries such as Cameroon, Algeria, Libya, Congo, and Gabon, as well as from South American nations like Argentina.
With Russia remaining India’s top supplier in 2025, efforts to diversify the crude basket will continue to ensure a secure supply amid market uncertainties. Higher imports from the Middle East reflect state-run refiners meeting term volumes to fulfill MoU commitments in Q4 (FY25), according to Kpler. Expectations of lower Russian arrivals in March and April could benefit Middle Eastern suppliers like Iraq and Saudi Arabia.
In response to lower Russian shipments, Saudi Arabia has slashed prices of its Arab Light grade for Asian buyers in April, signaling a potential increase in Middle Eastern barrels imported by India. As the landscape continues to evolve, India’s strategy to diversify crude sources and navigate trade turmoil and US sanctions remains crucial for securing stable energy supplies.
