In May, India saw a significant increase in its imports of oil from Russia, reaching a new high of approximately 2.1 million barrels per day (bpd). According to trade sources and shipping data, this surge was attributed to wider discounts offered on Russian oil, stemming from reduced demand from China.

The data revealed that Russia's share of India's oil imports, which is the world's third largest, rose to nearly 41% last month. Meanwhile, Saudi Arabia's supply to India dropped to its lowest point in ten months, following a second consecutive month of increased term prices by Saudi Aramco in May.

Indian refineries have been heavily purchasing Russian oil, taking advantage of discounted prices amidst a scenario where some European countries have refrained from buying Russian oil since Moscow's invasion of Ukraine in February 2022. Additionally, comparable grades from other regions, particularly the Middle East, have been more expensive.

Data indicates that India imported approximately 5.1 million bpd of oil in May, marking a 5.6% increase from April. Specifically, Indian imports of Russian oil in May were 14.7% higher compared to April and 5.9% higher than the same period last year.

An official from one of India's refineries mentioned, "Russian oil was abundantly available last month, with better discounts due to reduced demand from China."

Furthermore, Indian private refiners such as Reliance Industries and Nayara Energy, which are predominantly owned by Russian entities, have secured a term agreement for purchasing Russian oil.