India’s approach to crude oil sourcing and refining is undergoing a significant shift as global energy markets change and geopolitical pressures evolve, industry experts and policymakers say. Analysts at the India Energy Week 2026 and other recent forums highlighted that decreasing reliance on Russian crude, combined with major refining expansion and diversification of supply sources, is shaping a new chapter in India’s oil and gas strategy.
India, one of the world’s largest energy consumers and importers, has seen a noticeable decline in its dependence on Russian crude oil over recent months as Western sanctions and compliance risks have increased. Russian crude, once a major source for Indian refiners because of deep price discounts, has seen its share come down as India seeks more diversified supplies from the Middle East, Africa, and the Americas. Indian refiners are raising imports of crude from countries such as Brazil, Colombia, and others to offset reduced Russian volumes.
State-run refiners are actively realigning contracts. For example, Bharat Petroleum Corp Ltd has substantially boosted its deal with Brazil’s Petrobras for 2027, and Indian Oil Corporation is increasing purchases of non-Russian crude for upcoming deliveries. These moves are part of efforts to ensure stable feedstock supplies, manage sanction risk and secure long-term supply deals that provide competitive pricing and reliability.
Experts note that the decline in Russian crude imports reflects both external pressures and India’s own evolving strategy. U.S. and European sanctions on Russian energy exports have made direct imports from some Russian producers more complex and risky, prompting many refiners to reassess their sourcing. This trend has also opened negotiations for India to secure better terms with alternative suppliers, leveraging its growing oil demand to secure favorable contracts.
Alongside changes in crude sourcing, India is expanding its refining capacity and upgrading its infrastructure. Increased capacity enables Indian refiners not only to meet domestic fuel demand but also to export refined products globally, positioning the country as a key refining hub. The expansion, combined with diversification of crude inputs, strengthens energy security and reduces vulnerability to single-source shocks.
The strategic shift is also being supported by broader policy goals. India is targeting substantial investments in the oil and gas sector over the coming years, and officials have emphasized the importance of balancing energy security with economic competitiveness. By enhancing refining capabilities and cultivating a wider mix of crude sources, policymakers aim to ensure that India remains resilient amid international market volatility and geopolitical tensions.
