Saudi surpasses Russia in Indian oil imports

This agreement includes tariff adjustments—such as the US reducing tariffs on Indian goods to 18% from higher levels—and encourages diversification away from certain suppliers, alongside commitments to increase purchases of US energy products over the coming years. These factors appear to have prompted Indian refiners to rebalance their procurement mix

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In a significant development in global energy markets, Saudi Arabia has reclaimed its position as India's largest supplier of crude oil in February 2026, overtaking Russia for the first time in nearly a year. According to data from global ship-tracking firm Kpler, Saudi Arabian shipments to India averaged approximately 1.13 million barrels per day (bpd) in the first half of the month, narrowly surpassing Russian supplies, which stood at about 1.09 million bpd.

This shift marks a notable change from the previous dominance of Russian crude, which had been India's top source through much of 2024 and 2025. The change comes amid evolving geopolitical and trade dynamics. India, the world's third-largest crude oil importer and reliant on overseas supplies for nearly 90% of its energy needs, has been actively diversifying its sourcing to bolster energy security. Recent developments in the India-US interim trade framework, announced in early February 2026, have played a key role.

This agreement includes tariff adjustments—such as the US reducing tariffs on Indian goods to 18% from higher levels—and encourages diversification away from certain suppliers, alongside commitments to increase purchases of US energy products over the coming years. These factors appear to have prompted Indian refiners to rebalance their procurement mix. For years, Russia held a commanding role in India's oil imports, benefiting from substantial discounts and alternative trade arrangements that solidified its position post-2022.

However, ongoing Western sanctions targeting Russian energy exports—including measures against major producers like Rosneft and Lukoil—combined with strategic dialogues between India and the United States, have influenced refiners to adjust their strategies. While Russian volumes have receded in early 2026, India continues to maintain a diversified approach, sourcing from multiple partners such as Iraq, the UAE, the United States, and Latin American producers.

This development is more than a short-term fluctuation; it signals a potential realignment in India's energy strategy. With one of the world's largest refining capacities—set to expand further in the coming years—the country is positioning itself to navigate shifting global markets, geopolitical pressures, and trade relations more resiliently. The implications could extend to broader geopolitics, international trade balances, and the economics of domestic refining in the months ahead.

Several advantages have favored Saudi Arabia's return to the top spot. Competitive pricing, including a 30-cent-per-barrel reduction in Aramco's premium pricing to better align with Dubai and Oman benchmarks, has made Saudi crude more attractive. Additionally, lower transportation costs and significantly shorter transit times—around 3 days to Indian ports compared to longer routes from Russia or the US—have provided logistical edges. These elements have helped offset the heavy discounts that once made Russian oil particularly appealing in the aftermath of the Ukraine conflict, when new payment mechanisms and pricing strategies elevated Russia's share.