Indian refineries can cope without Russian oil but with trade -in

New Delhi, August 10 (PTI) Indian refineries, the world’s largest user of Russian oil, can work from a technical point of view without supplies from Moscow, but the shift would involve major economic and strategic exchanges, analysts said. Russian rough supports high distillate yields – the part of the rough converted into fuel such as gasoline, diesel and jet fuel by distillation. The replacement of Russian RU, which accounts for up to 38 percent of the intake of the india refinery, with alternatives will shift yields, leading to lower midstillates (diesel and jet fuel) and higher residue outputs, according to the global real-time data and analytical provider KPLer. US President Donald Trump announced an additional 25 percent tariff on US imports from India last week – which increased the total duty to 50 percent – as a fine for the country’s continued import of Russian oil. Since the steep rates are likely to hit the USD 27 billion in non-exempt exports that India does to the US, there are chats around the stop or restriction of oil imports from Russia. “Indian refineries can work from a technical point of view without Russian rough, but the shift would involve major economic and strategic exchanges,” Kpler said in a report: ‘US rates on Indian imports: implications for energy markets and trade flow’. India bought itself to the purchase of Russian oil sold at a discount after the Western countries set sanctions on Moscow and avoided its supplies in the invasion of Ukraine in February 2022. As a result, from only 1.7 percent share in the total oil imports in 2019-20 (FY20), the Russia’s share has risen to 35.1 percent in FY25, and it is now the largest oil improver to India. In terms of volume, India imported 88 million tonnes from Russia in FY25, from the total shipping of 245 million tonnes. In July, India received 1.6 million barrels per day from Russia, before the nearly 1 million BPD of China and Turkey about 5.00,000 pd. Kpler said deep discounts and strong compatibility with India’s refinement systems have led to an increase in the import of Russian ural -ru oil. “Russian rough supports high distillate yields (diesel and jet fuel) and is ideally suited to India’s advanced refining infrastructure. This has enabled both state-owned and private refineries to work above the name tag, while retaining the strong margins.” A reversal of it will lead to a soft yield shift (lower middle yields, with the higher yields) and probably a small reduction in primary doorks, so longer recommend a significant premium against local standards, taking into account existing discounts on Russian oil, “Kpler said. energy security. ” If Russian oil can be inaccessible, India could have an extra USD 3-5 billion in annual import costs. If world prices rise further (a scenario in which Russian crude exports are reduced, in the absence of adequate buying interest from India), the financial burden could rise significantly, ‘the report states. This could lead the government to end retail prices, which could lead fiscal balances. Russian flow to India continues with a ‘business-as-usually’ attitude, the escalating American rhetoric has reopened talks on supply diversification, with some Indian refineries that, according to the Middle Eastern rough a multi midland of the US, can contribute 2,00,000-4,00,000 bpd. Middle East, with us and Africa/Latam crosses serving as tactical fillers. Nevertheless, no one corresponds to the Russian vessels in costs, quality or reliability (some of the Russia-to-India barrels have already been contracted under term agreements), “it noted. According to KPLer, Indian refineries can technically adapt to the loss of Russian vessels, but with significant economic consequences.” The replacement of 1.7-2.0 million BPD of the yield of medium yields. Lighter substitutes produce more gasoline and NAFTA such as WTI or West African degrees, reducing diesel production and injuring domestic and export economy. “Even the Middle Eastern grades, although closer to the prices, are tightly priced to official sales prices (OSP), leaving limited arbitration opportunities.” In addition to higher feed costs. commercially painful, even if technically feasible. “