US threatens tariffs on Russian crude
Washington's tariff threat could curb discounted Russian barrels to refiners and push petrol costs higher for importing countries such as India.
Mateo Fernandez ·
The US threatened tariffs on Russian crude on September 17, 2026, after Russia became one of India's biggest crude suppliers since 2022, risking higher petrol prices for importers.
India's crude imports from Russia
Data showed Russian barrels have flowed to Indian refiners in large volumes since 2022 as Western sanctions and trade shifts reshaped seaborne supply. Officials said Washington is considering tariffs aimed at discouraging purchases of discounted Russian cargoes.
Traders said the announcement has created immediate price uncertainty in regional seaborne markets; market reaction is still being assessed. If buyers avoid Russian crude, cargoes will need reallocation, which traders and refiners said would narrow the discount on those grades and raise feedstock costs for refiners that relied on them.
Refining and retail impact
Officials in New Delhi have previously favoured diversified crude sourcing to protect margins. Refiners' profit margins depend on the spread between crude grades and refined product prices; traders said a tightening of supply for discounted Russian grades would compress margins and put upward pressure on petrol pump prices in importing countries.
If Washington formalises tariffs by September 30, 2026, traders said refiners could face higher feedstock costs that would begin to show in retail petrol prices in India by October 2026, depending on cargo sourcing and existing inventories.