India’s exports of petroleum products such as diesel and jet fuel are exempted from any import duty or tariff levy, and President Donald Trump, now, has not indicated a plan to implement New Delhi’s energy trade with Russia.
On Wednesday, Mr. Trump announced a plan to impose 25% tariff on India with an additional fine, citing concerns over the country’s energy and defense relations with Russia, as well as an additional fine.
हालांकि, इसके बाद उन्होंने जिस कार्यकारी आदेश पर हस्ताक्षर किए, वह केवल अमेरिका में आने वाले भारतीय सामानों पर 25% टैरिफ को प्रभाव देता है, यहां तक कि इसमें एक बहिष्करण सूची है जिसमें तैयार फार्मास्युटिकल उत्पाद (टैबलेट, इंजेक्टेबल्स और सिरप), सक्रिय फार्मास्युटिकल सामग्री, इलेक्ट्रॉनिक्स और आईसीटी सामान (अर्धचालक, स्मार्टफोन, एसएसडीएस, एसएसडीएस, एसएसडीएस, एसएसडीएस, एसएसडीएस, और पेट्रोल Oil, and petrol oil, and petrol oil, and petril oil, and petrol oil, and petrol oil,
The executive order also does not indicate any penalty which is to be imposed for Russian trade.
According to official data, India exported 4.86 million tonnes of petroleum products to the US for more than $ 4 billion in FY 2024-25 (April 2024 to March 2025).
Reliance Industries Limited is the largest exporter of fuel to America
Analysts stated that fuel exports continue in the exemption list, which means that analysts said for India in general for companies such as trade and Reliance.
In addition, there will be a relief if no penalty is imposed to punish India for its oil imports from Russia, he said that for now, the US administration has not indicated any punishment. An analyst said, “For now, there is nothing, but you never know.”
For accounting for 35-40% of the total raw imports from only 0.2% before the Russia-Ukraine War, India’s dependence on Russian oil has increased-freshly examined with Shri Trump, announcing 25% tariff, or on top of tax, on all accessories that go to the US.
India historically bought most of its oils from the Middle East, including Iraq and Saudi Arabia. However, things changed when Russia attacked Ukraine in February 2022.
After India, China and the United States, the world’s third largest crude importer began to pour the russian oil, which was available at a discount after some in the West, it was closed as a means of punishing Moscow for its invasion of Ukraine.
Before the introduction of the Russia-Ukraine conflict, India’s import baskets left behind by only 0.2% market share, Russia left behind Iraq and Saudi Arabia to become India’s number 1 supplier, with a stake of up to 40% at a time.
This month, Russia supplied 36% of all crude oil, which was converted into fuel like petrol and diesel, which India imported.
Announcing 25% tariff or tax on all Indian goods going to the US, Mr. Trump said that New Delhi always “bought a vast majority of its military equipment from Russia, and Russia’s largest energy, with China, with China, at a time when everyone wants Russia wants to stop murder in Ukraine.” In a post on social media, he said, “India will therefore pay a tariff of 25%, as well as a fine for the above (Russian purchase), first will start from August.”
According to Global Real-Time Data and Analytics provider KPler, India bought 68,000 barrels per day for crude oil from Russia in January 2022. That month, Indian imports from Iraq were 1.23 million BPD and 883,000 BPD from Saudi Arabia.
In June 2022, Russia overtook Iraq to become India’s largest oil supplier. That month, it supplied 1.12 million BPD compared to 993,000 BPD from Iraq and 695,000 BPD from Saudi Arabia.
In May 2023, Russian imports reached 2.15 million BPD and have been separated since then depending on the discount on which oil was available. But Volumes never slipped below 1.4 million BPD, which was buying from its top supplier Iraq before the Russia-Ukraine conflict.
In July, Russia’s imports were an average of 1.8 million BPD, about 950,000 BPD imports from Iraq. According to KPler, Saudi imports were at 630,000 BPD.
After the Ukraine War, Western energy restrictions against Russia pushed it to cut prices for buyers, who are still ready to buy their crude.
Raw exemption for Brent on Russia’s flagship Ural-the most famous benchmark-one point in the world was as high as $ 40 per barrel, but has been trimmed since less than $ 3.
In December 2022, G7 countries imposed a $ 60 per barrel price cap on Russian raw raw. Under the mechanism, European companies were allowed to transport and insurance of Russian oil shipments to third countries, until it is sold below the capped price – attempts to limit the impact of restrictions on global oil flow but ensure that Russia earns less than trade.
Last month, the European Union decided to reduce the price cap by $ 47.6 and introduced an automatic and dynamic mechanism for its future reviews. The idea is to keep the cap at 15% lower than the average market price.
In addition to stoking India’s economy, cheap Russian oil gave refiners an attractive business – refining that rawness and exporting products to deficit countries.
These included the European Union, which banned the purchase of crude oil directly from Russia.
This month, the European Union decided to ban the import of sophisticated oil produced from Russian crude.
Published – 02 August, 2025 12:36 AM IST
