New Delhi, August 28, 2025
India’s much-discussed “oil advantage” from Russian crude may not be as profitable as it appears. A new CLSA report has revealed that, despite the hype, India’s annual profit from discounted Russian oil is only $2.5 billion — far below earlier projections of $10–25 billion.
Big Media Hype, Small Real Profits
The report claims that while the media projected massive gains for India, the real benefit is just 0.06% of India’s GDP. Higher costs from insurance, shipping, and blending expensive crude have eaten into the supposed discounts.
Discounts too are shrinking: from $8.5 per barrel in FY 2023-24 to just $1.5 per barrel in recent months.
Tariffs Add More Trouble
Adding to the financial strain, the US recently doubled tariffs to 50% on Indian exports, linking it to India’s continued Russian oil purchases. Analysts warn this could hurt Indian exporters, slow economic growth, and worsen trade tensions with Washington.
Global Oil Market at Risk
The CLSA also warned that if India stops importing Russian oil, global crude prices could surge to $90–100 per barrel, fuelling global inflation.
Strategic but Costly
Despite the limited profits, experts stress that Russian oil remains strategically important for India, not just for domestic energy needs but also for keeping global oil prices in check.
Since the Russia-Ukraine war (2022), India has become one of Russia’s biggest oil buyers — importing 36% of its crude from Moscow in FY 2024-25, up from less than 1% before the war.
But with shrinking discounts and rising tariffs, India’s energy strategy faces a new test.
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“India’s Russian Oil Profits Shockingly Low, Report Reveals”
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