Indian oil importers have approached Russian suppliers with a demand for substantially larger discounts amid increasing risks associated with cooperation with Moscow. Buyers are insisting on raising the discount to approximately $10 per barrel compared to the benchmark Brent, while in September the discount was only $2–3.
This is reported by Business • Media
Reduction in Oil Supplies and Response from Russian Exporters
Some Russian suppliers are unwilling to agree to the proposed terms, considering such discounts excessive. They are contemplating redirecting part of the oil volumes to China, which could lead to a slight reduction in supplies for India.
It is forecasted that in October, the volume of Russian oil imports to India will be around 1.4 million barrels per day. This is lower than in August (1.5 million barrels, a decrease of 6.7%) and in September (1.6 million barrels, a decline of 12.5%). Moreover, most of the October shipments are likely to be sold at a price exceeding the established cap, as even a $10 discount does not bring the price below the new limit set by the EU and the UK — $47.6 per barrel.
Impact of US Tariffs on the Indian Economy
“It is worth noting that purchases of Russian oil for India will result in significant losses due to US tariffs. According to the chief economic advisor of India, tariffs on Indian goods could reduce the country’s GDP by 0.5% in this financial year.”
Thus, the Indian energy market is facing dual pressure: the need for discounts due to risks associated with cooperation with Russia and at the same time the negative impact of US tariffs on the country’s economy.