India snubs Russian oil, turns to Nigeria

Indian state-owned refiners have significantly reduced purchases of Russian oil amid growing U.S. scrutiny and waning price advantages, opting instead for increased imports from Nigeria, other West African producers, and the United States.

The shift marks a notable change in India’s energy sourcing strategy as geopolitical and market pressures reshape global oil trade.

According to trade sources, Indian Oil Corporation (IOC) recently purchased several cargoes for September delivery through commodity trader Trafigura. The order includes one million barrels each of Nigeria’s Agbami crude, Angola’s Girassol, U.S. Mars crude, and three million barrels of Abu Dhabi’s Murban. Additionally, IOC acquired two million barrels of Nigerian crude on the spot market.

This change comes after public sector units (PSUs) including IOC, Bharat Petroleum Corporation Limited (BPCL), Hindustan Petroleum Corporation Limited (HPCL), and Mangalore Refinery and Petrochemicals Limited (MRPL) halted spot purchases of Russian crude in July. Industry officials cited narrower discounts and concerns over potential U.S. secondary sanctions targeting firms involved in Russian oil trade.

In Nigeria, the Dangote Refinery Africa’s largest with a nameplate capacity of 650,000 barrels per day processed approximately 590,000 barrels per day in July. U.S. crude made up nearly 60% of the feedstock, marking the first time American oil dominated the refinery’s intake since operations began.

Dangote officials confirmed the refinery still plans to transition fully to Nigerian crude by the end of 2025, a move aimed at supporting the domestic oil market and improving Nigeria’s balance of payments.

While state-run Indian refiners have cut Russian purchases, private companies like Reliance Industries and Nayara Energy continue to source from Russia. Nayara, partially owned by Rosneft, remains closely linked to Moscow’s energy trade. These firms often re-export refined products to Europe, Asia, and Africa, leveraging flexible refining capacity and existing long-term deals.

Despite the shift, Indian officials stress that long-term term contracts with Russia will be honored, underscoring the country’s continued focus on energy security and supply diversification. Nonetheless, analysts note that Indian refiners are broadening their crude sources to include more shipments from West Africa, the Middle East, the U.S., and Azerbaijan.

India, the world’s third-largest oil consumer, continues to adapt its sourcing in response to shifting market dynamics and diplomatic realities.

With African suppliers like Nigeria and Angola gaining ground, the reshaping of global energy flows is likely to persist in the coming months.