India’s intake of Russian crude dropped to about 1.74 million barrels per day in September, the lowest level since April. Refiners have stepped up sourcing from Iraq and Saudi Arabia to balance supply risks.

Indian oil refiners are also facing supply tightness as physical Middle Eastern crude commands a premium of 12 to 22 dollars per barrel over headline Brent futures, due to Persian Gulf shipping constraints linked to the ongoing regional conflict.

The shift in sourcing comes as the US-Iran war disrupts shipping lanes and pushes up insurance and freight costs. India, a major crude importer, is adjusting its buying patterns to manage the squeeze.

Analysts say the diversification away from Russian barrels reflects both price and logistics pressures. The trend will be watched closely in the coming months as the conflict evolves.

The drop reflects a careful balancing act by Indian refiners between price, availability and geopolitical risk. Discounts on Russian barrels have narrowed in recent months. Shipping disruptions in the Gulf have pushed refiners to secure supplies closer to home. Energy security remains the top priority for policymakers, who say India will buy from the most economical sources available.