Daijiworld Media Network - New Delhi

New Delhi, Oct 18: India’s imports of Russian crude oil declined by 13 per cent in September, marking the second consecutive monthly fall and the lowest level since April, amid rising prices triggered by the escalating conflict in the Middle East and disruptions to key maritime trade routes, according to a report by the Centre for Research on Energy and Clean Air (CREA).

Imports at the Reliance-operated Jamnagar refinery fell by 27 per cent, while Indian Oil Corporation’s (IOC) Paradip refinery recorded a 21 per cent decline. Imports at Nayara Energy’s Vadinar refinery dropped by 8 per cent.

Despite the decline, India remained Russia’s second-largest buyer of fossil fuels in September, importing Russian hydrocarbons worth 4.1 billion euros, of which crude oil accounted for 88 per cent. China was the largest buyer.

Since December 2022, India has accounted for 37 per cent of Russia’s crude oil exports, compared with China’s 50 per cent, the CREA report said.

In a significant development for India and China, US President Donald Trump issued an executive order on Friday waiving several sanctions and tariffs linked to Russian oil exports, a day before the measures were scheduled to take effect under legislation he had signed last month.

Trump said the waiver had been authorised in the United States’ “national interest”. The move is expected to allow India and China to continue importing Russian oil at current levels.

Meanwhile, the average price of Russia’s Urals-grade crude rose by 32 per cent month-on-month to USD 90.7 per barrel in September 2026, the highest monthly average since April 2026.

The price was more than double the European Union and United Kingdom price cap of USD 44.1 per barrel, which came into effect on February 1, 2026, and remained unchanged under the EU’s 21st sanctions package, according to CREA.

Global fossil fuel prices remained elevated in September despite a month-on-month increase of more than 60 per cent in the volume of oil transported through the Strait of Hormuz, based on detected vessel crossings. However, shipping volumes remained significantly below the levels recorded before the US and Israeli strikes on Iran.

The disruption to energy supplies through the Strait of Hormuz has substantially boosted Russia’s fossil fuel export earnings. A recent CREA analysis estimated that higher oil and gas prices had increased Russia’s seaborne export revenues by USD 35.9 billion, equivalent to 31 billion euros, in the six months since the US-Israel strikes on Iran began.

The report also highlighted the concentration of Russia’s fossil fuel exports among a limited number of major buyers. China remains the dominant purchaser of Russian coal and crude oil, while Turkiye leads in purchases of oil products. The European Union continues to be the largest buyer of Russian liquefied natural gas (LNG) and pipeline gas.

This dependence on a relatively narrow group of key customers remains a defining feature of Russia’s fossil fuel trade, the CREA report added.