New Delhi: Indian officials have again pressed the Trump administration to allow crude oil purchases from sanctioned suppliers Iran and Venezuela if the country is expected to reduce its imports of Russian oil significantly. A delegation visiting the United States this week reiterated the request in private meetings with American officials, according to sources familiar with the discussions.
India’s energy concerns
Indian representatives stressed that simultaneously cutting off supply from Russia, Iran, and Venezuela—all major oil producers—could create a spike in global crude prices. India relies on imports for almost 90% of its oil needs, and cheaper Russian barrels have helped ease the burden on its import bill. Iranian and Venezuelan oil would also be offered at discounted rates.
Despite US pressure, India has continued to import Russian crude, though at a reduced pace. A spokesperson for the US embassy in New Delhi noted that Indian purchases of Russian oil undermine American efforts “to counter Russia’s harmful activities”. Indian authorities from the Commerce and Oil Ministries declined to comment on the matter.
US tariffs and India’s response
The delegation’s visit comes after Washington imposed heavy tariffs on India for its trade with Russia. Indian refiners, including the nation’s largest private refiner Reliance Industries Ltd., have complied with restrictions on Venezuelan oil but continued to source discounted Russian crude to manage domestic costs.
Indian Commerce Minister Piyush Goyal, speaking in New York, said the country wanted to increase purchases of American oil and gas. “Our energy security goals will have a very high element of US involvement,” he said, signalling India’s willingness to diversify supplies while balancing geopolitical realities.
Pricing dynamics
Data from India’s Commerce Ministry show that in July, oil refiners paid an average of $68.90 a barrel for Russian crude, compared with $77.50 for Saudi crude and $74.20 for US crude. India is the largest buyer of Russian oil delivered by tanker, while China is the largest overall importer including pipeline deliveries.
Shifting to Middle Eastern barrels would raise costs and increase India’s overall import bill. The oil market is expected to see a surplus next year as OPEC+ and non-OPEC producers increase output, which may put downward pressure on global prices.
Strategic balance
India’s strategy seeks to maintain energy security while responding to international sanctions and trade pressures. Allowing purchases from Iran and Venezuela could provide flexibility in crude sourcing and help stabilise domestic fuel prices. Analysts note that balancing American expectations with affordable crude imports is a complex but critical challenge for Indian policymakers.
Conclusion
India’s continued engagement with the US highlights the delicate balancing act in energy diplomacy. While Washington demands reductions in Russian imports, New Delhi emphasises economic and strategic imperatives, signalling that access to alternative discounted crude from sanctioned nations may be essential to maintain price stability and energy security.