India increases Russian and UAE crude purchases as Hormuz risk lingers

Indian refiners have increased crude purchases from Russia and kept imports from the United Arab Emirates near record levels as they hedge against lingering disruption risk around the Strait of Hormuz, according to reports citing Kpler data.

Refiners shift supply

The buying pattern points to a cautious procurement strategy while recovery in Gulf shipping remains incomplete. The Economic Times reported on June 21 that Indian refiners were stepping up Russian crude intake and sustaining elevated UAE volumes ahead of a broader normalization in traffic through the waterway.

Times of India later reported similar findings, saying India had ramped up Russian and UAE oil purchases as refiners prepared for a gradual reopening of the Strait of Hormuz.

Why Hormuz matters

The Strait of Hormuz is one of the world’s most important oil transit chokepoints, and any disruption can quickly affect freight, availability and refinery planning. India, which imports much of its crude, typically balances supply between multiple sources, and the latest shift suggests refiners are still treating the Gulf route as a live risk.

The reports also said liquefied petroleum gas shipments are expected to be among the first energy flows to recover as conditions normalize, although the pace of broader recovery remains uncertain.

Market and policy implications

The change in sourcing could affect near-term procurement costs and reliability for Indian refiners. If cheaper or more secure cargoes continue to arrive, that may help limit pressure on domestic fuel prices, although any benefit depends on how long the current shipping environment lasts.

Oil Minister Hardeep Singh Puri has said petrol and diesel prices may ease as cheaper crude reaches refiners, while Ports, Shipping and Waterways Minister Sarbananda Sonowal said three Indian-flagged crude tankers had crossed Hormuz and were headed home with crew members aboard.

What to watch next

The next cargo data releases will show whether Russian and UAE volumes remain elevated. Investors and refiners will also be watching for official Indian government commentary on supply diversification, as well as any further sign that shipping through Hormuz is normalizing.

For now, the picture is one of continued caution: India is still adjusting its crude buying to a Middle East supply corridor that has not fully settled.