Russia Remains Top Crude Supplier to India in August as US Leads LPG and LNG Shipments

Russia retained its position as the largest supplier of crude oil to India in August, while the United States emerged as the top source for liquefied petroleum gas (LPG) and liquefied natural gas (LNG), according to data from maritime intelligence and analytics firms.

What Happened

Data from energy research firm Kpler reveals that India imported 2.1 million barrels of crude oil per day (mbd) from Russia in August, representing 45% of the nation’s total crude imports. This volume reflects a decrease from July’s record peak of 2.8 mbd. Across all sources, India’s overall crude imports dropped to an estimated 4.6 mbd in August, marking a decline of nearly 8% from more than 5 mbd recorded in July.

Alongside Russian supplies, the United Arab Emirates and Saudi Arabia each supplied 0.5 mbd of crude to India, while Venezuela accounted for 0.3 mbd. The reduction in overall imports followed heavy purchasing between May and July, when domestic refiners built inventories to protect against potential disruptions from escalating tensions in West Asia.

Simultaneously, the United States led shipments of gas to India. Figures show the US delivered 0.6 million tonnes (MT) of India’s 1.1 MT total LPG imports, securing nearly 51% of the market share. For LNG, the US supplied 0.8 MT out of India’s total 2.2 MT imports, representing approximately 38%.

Key Highlights

• Russian Crude Dominance: Russia supplied 2.1 mbd of crude oil, fulfilling 45% of India’s overall oil imports during August.
• Import Moderation: Overall crude intake fell by almost 8% month-on-month to 4.6 mbd due to planned refinery maintenance, prior stockpiling, and lower availability of Russian oil.
• US Gas Supplies: The United States accounted for roughly 51% of India’s LPG imports (0.6 MT) and 38% of its LNG imports (0.8 MT).
• Two-Way Fuel Flow: Analytics firm Vortexa reported that India, along with Türkiye and Morocco, exported petrol and diesel to Russia after Ukrainian strikes affected Russian domestic refining assets.
• Rising Import Expenses: Extended shipping distances and higher insurance premiums associated with energy diversification increased commodity delivery costs.

Why This Matters

The import shifts highlight ongoing recalibrations in India’s energy sourcing. While Russian crude imports moderated from historical highs, they continued to provide nearly half of the country’s crude requirements. At the same time, refinery disruptions in Russia caused by Ukrainian strikes resulted in Russia importing seaborne fuel, creating an opening for Indian refined petrol and diesel exports.

Furthermore, sourcing significant volumes of LPG and LNG from distant suppliers like the United States has contributed to greater geographic diversification, though experts note it has also added freight and insurance expenses to overall import costs.

What to Watch Next

Refinery operations in India are expected to adjust as scheduled maintenance cycles conclude. Observers will also track whether Russia’s domestic fuel processing capacity recovers and how prolonged transit routes continue to influence import shipping bills and insurance costs for Indian buyers.

Frequently Asked Questions

How much crude oil did India purchase from Russia in August?

India bought 2.1 million barrels per day from Russia in August, which accounted for 45% of India’s total crude oil imports for the month.

Why did India’s crude oil imports decrease in August?

Experts attributed the decline to moderation following heavy buying between May and July, scheduled maintenance shutdowns at domestic refineries, and reduced availability of Russian crude.

Which countries supplied the most LPG and LNG to India?

The United States was the leading supplier for both, accounting for nearly 51% of India’s LPG and 38% of its LNG imports. Other key suppliers included the UAE and Algeria for LPG, and Oman and Nigeria for LNG.

Source: Based on reporting from The Times of India with tracking data from Kpler and Vortexa.