• India will continue purchasing Russian oil regardless of U.S. sanctions waivers, driven purely by commercial interests.
  • State fuel retailers are losing about 7.5 billion rupees ($90 million) daily on fuel sales, but the government has no plans to provide financial support.
  • Officials say crude supplies are sufficient and there is no risk of shortages.

India's Stance on Russian Oil

India is pressing ahead with its purchases of Russian oil, undeterred by the patchwork of U.S. sanctions and waivers, according to Sujata Sharma, a senior official at the Ministry of Petroleum and Natural Gas. Speaking at a press briefing in New Delhi, Sharma said the country's energy needs are paramount and that buying decisions are "driven by commercial interests."

"We will continue to buy Russian oil regardless of the waiver regime," she said, adding that India has already secured enough crude supplies for the near term and sees no risk of shortages. The remarks underscore India's balancing act between maintaining energy security and navigating Western sanctions aimed at punishing Moscow for its war in Ukraine.

India has emerged as a major buyer of Russian crude since the invasion, attracted by steep discounts. Russian oil now accounts for roughly a third of India's imports, up from near zero before 2022. While the Biden administration has granted waivers to allow some transactions, the situation remains fluid as enforcement efforts evolve.

State Refiners Under Pressure

Meanwhile, state-run fuel retailers are bleeding cash. Sharma confirmed that public-sector oil marketing companies are losing about 7.5 billion rupees ($90 million) per day on fuel sales, as they hold retail prices below market rates to curb inflation. However, she ruled out any government bailout, saying the companies must manage the situation through their own efficiencies.

"There is currently no plan to provide financial support to state refiners," she said. The daily losses, which have persisted for months, highlight the tension between political pressure to keep fuel affordable and the financial strain on companies like Indian Oil Corp., Bharat Petroleum Corp., and Hindustan Petroleum Corp.

The government has not raised domestic fuel prices since May 2022, even as global crude prices have fluctuated. The gap between import costs and retail prices has widened, squeezing refining margins. Analysts warn that a long-term solution may require either price hikes or a policy shift on subsidies.

Market and Geopolitical Implications

India's continued embrace of Russian crude comes as other Asian buyers, including China, also absorb discounted barrels. The strategy has helped New Delhi manage its trade deficit and inflation, but it also risks friction with Washington. U.S. officials have urged India to reduce its reliance on Russian energy, though they have stopped short of imposing secondary sanctions on Indian refiners.

The latest comments suggest India will not blink first. Sharma noted that the country's refining infrastructure is capable of processing various grades of crude, making it well-positioned to source from wherever price advantages emerge.

"For India, energy security is non-negotiable," she said. The message is clear: New Delhi will keep buying Russian oil for as long as it makes economic sense.