Russian Oil Premium Jumps 425% As India's Import Bill Soars

Russia strengthened its position as India's biggest crude oil supplier in April 2026, but there was a catch. The oil was no longer as cheap as before.

Fresh trade data shows Russia accounted for 38% of India's crude oil imports in April, which is equivalent to around 67 lakh tonnes of crude. However, the premium India paid for Russian oil surged 425% in just one month, highlighting how the cost advantage that attracted Indian refiners after the Ukraine war is rapidly shrinking.

From Discounted Oil To Premium Prices

For much of the past four years, India benefited from discounted Russian oil as Western sanctions pushed Moscow to offer crude at lower prices.

But now, the premium on Russian crude rose from just $14.8 per tonne in March to $77.8 per tonne in April. As a result, Indian refiners paid about $864.9 per tonne for Russian oil, significantly above India's average crude import price of $787.1 per tonne.

This means Russian crude, which was once viewed as a source of savings, is now costing Indian buyers substantially more.

India's Oil Bill Jumps 61%

The higher prices had a direct impact on India's import costs. The country's oil import bill climbed 61.3% year-on-year to $15.4 billion in April. What's notable is that import volumes increased only 23% during the period.

India's spending on Russian crude surged sharply during the month. Imports from Russia were valued at $5.79 billion (around ₹54,179 crore) in April, up from $3.25 billion (₹30,138 crore) in March.

Also Read - Domestic LPG Prices Raised By ₹29 Again; OMC Stocks Remain In Focus

The jump points to how India's imports from Russia not only rose in quantity but also in monetary terms, at a time when the price of Russian crude went up drastically. India seems to be prioritising the security of its supplies at a time when geopolitical tensions are leading to disruption of global energy markets, even if it comes at a premium price.

Source:

The Hindu