Russian crude is turning even cheaper for Indian refiners with discounts widening to as much as $3–$4 per barrel even as the Donald Trump administration hits New Delhi with steep new tariffs over its oil
imports from Moscow. According to a Bloomberg report, Russia’s Urals grade is being offered at the lower price for cargoes loading in late September and October. The discount stood at around $2.50 last week, compared with just $1 in July. By contrast, recent US crude shipments to India carried a $3 premium to Brent, reinforcing the price advantage of Russian oil.
Tariffs And Tensions Between US-India
The widening price gap comes as Washington sharpens its trade offensive against India. The Donald Trump administration has imposed a 50% tariff on Indian goods in retaliation for its rising Russian oil imports. An additional 25% duty was slapped on other products, compounding strains in already fraught trade ties.
Defending the move, Donald Trump adviser Peter Navarro accused India’s refiners of indirectly funding Moscow’s war effort.
“Before Putin invaded Ukraine, India didn’t buy Russian oil to speak of- very, very small amounts. What happened? Now, Russian refiners provide discounts, India refines it, and then sells it at a premium to Europe, Africa and Asia. It fuels the Russian war machine,” Navarro said.
India’s Energy Calculus
India, the world’s third-largest oil importer, has dramatically scaled up Russian crude purchases since 2022. Imports have risen from under 1% of India’s oil basket to nearly 40%. In 2024–25, Russia supplied 36% of India’s 5.4 million barrels per day, overtaking Iraq, Saudi Arabia, the UAE and the US.
New Delhi insists its energy trade with Moscow is legitimate, stressing that no international sanctions prohibit crude purchases and that the US itself has not banned Russian oil.
What Donald Trump Said On India Tariffs
US President Donald Trump doubled down on his criticism of New Delhi, calling bilateral trade ties “a totally one-sided disaster.”
Writing on Truth Social, Donald Trump claimed India had previously offered to cut tariffs to zero, but added it was “getting late” and that such a move should have come “years ago.” He further accused India of buying oil and arms from Russia while selling “massive amounts of goods” into the US market but maintaining high barriers on American exports.
“The reason is that India has charged us, until now, such high tariffs, the most of any country, that our businesses are unable to sell into India. It has been a totally one-sided disaster!” Donald Trump posted.
