India has become a major supplier of gasoline to Russia, sending nearly 1 million barrels in the last two months. This change comes as Ukrainian drone strikes have disrupted Russian refinery operations, causing a fuel shortage in Russia. Ship-tracking data from PTI shows that most shipments came from the Vadinar refinery in Gujarat, operated by Nayara Energy. Russia's state-owned oil company Rosneft owns a 50% stake in Nayara Energy.
Key Details
In August, Russia's seaborne gasoline imports hit a record of about 125,000 barrels per day, totaling around 470,000 tonnes for the month, according to energy analytics firm Vortexa. This rise in imports is due to a big drop in domestic gasoline production, which fell by up to 70%. This decline was caused by 32 attacks on Russian refineries in July and August. These attacks happened roughly every other day, affecting Russia's refining capacity.
Background
Even though Russia is one of the world's largest crude oil exporters, it has struggled to meet domestic fuel demand. The country has extended its full gasoline export ban for both producers and non-producers until January 2027. The diesel export ban has also been extended through September 1, 2026. India's role as a gasoline supplier has grown as it has increased its purchases of Russian crude oil. This crude accounted for more than half of India's total crude imports during June and July, according to PTI. In those months, India imported over 2.6 million barrels per day of Russian crude, a big rise from about 1 million barrels per day in February.
The gasoline supply disruptions in Russia could lead to more volatility in global oil markets. Investors may closely watch crude oil prices and gasoline futures as the situation unfolds. Further updates on refinery operations and any changes in export policies from Russia are expected.
Based on reporting by: livemint.com, moneycontrol.com