India’s petroleum product export competitiveness influenced crude sourcing decisions in 2025, with refiners considering how crude choices affected finished product market access. Data reveals that US crude imports to India surged by 65.6% to $8.2 billion during April-December 2025, while Russian crude imports contracted by more than 17%, falling from $40 billion to $33.1 billion year-on-year.
December 2025 procurement reflected export market considerations. Russian crude shipments to India declined by 15.15% to $2.71 billion from $3.2 billion in December 2024, partly driven by concerns that processing Russian crude might affect export market access for finished petroleum products. Indian refiners export significant volumes of diesel, gasoline, and other products to international markets.
Alternative crude sources supported export competitiveness. Saudi Arabia’s 61% growth to $1.75 billion in December 2025 provided crude without export market complications. The United States’ 31% increase to $569.30 million offered similar advantages. Iraq and the UAE, supplying $2.37 billion and $1.65 billion respectively, supported products destined for various export markets.
Export considerations gained prominence following the US imposition of a 25% punitive tariff on Indian goods on August 27, 2025. Refiners calculated that sourcing Russian crude might jeopardize access to key export markets for petroleum products, effectively creating indirect costs beyond the direct tariff. This export market access concern contributed to declining Russian crude imports from $3.62 billion in July 2025 to $2.71 billion in December 2025.
India’s total crude oil imports from all sources reached $11.29 billion in December 2025, up 9.1% from $10.34 billion in December 2024. Cumulative imports for April-December 2025 totaled $105.10 billion, compared to $109.33 billion in the corresponding period of 2024. The export competitiveness factor demonstrates how downstream markets influence upstream sourcing.