China Is Buying More Russian Oil: Is India Losing Its Energy Advantage?

For much of the past few years, Russian crude has been a major advantage for Indian refiners. Discounted Russian oil helped India secure relatively affordable supplies while strengthening its position as a major refining hub. But the latest shift in global oil flows is creating a new challenge: China is increasingly competing for the same Russian barrels.

In August, China’s seaborne imports of Russian crude are estimated at around 1.25 million barrels per day, while India’s Russian crude imports have fallen to approximately 1.87 million barrels per day, down sharply from record levels of more than 2.7 million barrels per day in June and July.

The shift is particularly important because Chinese buyers are increasingly taking Russian crude from Asian ports, while Indian refiners traditionally source much of their Russian oil from Russia’s European ports. As Chinese demand rises, Indian refiners could face greater competition for available cargoes.

This comes at a difficult moment for India. The Iran conflict and disruption around major shipping routes have already tightened global energy markets. India’s August crude imports are estimated at around 4.17 million barrels per day, down from 5.06 million in July.

India remains a major refining power and its fuel exports are still strong. But if Russian supplies become harder or more expensive to secure, the impact could eventually reach refining margins, fuel exports and domestic energy costs.

The bigger lesson is clear: cheap Russian oil was an advantage, not a permanent guarantee. If China captures a larger share of Russia’s available crude, India will need to diversify suppliers, strengthen strategic reserves and accelerate alternative energy development.

The real question is no longer whether India can buy Russian oil—but whether it can remain competitive when everyone else wants the same barrels.