US sanctions law may raise India oil import bill $5-10 bn

New Delhi: India’s state-run oil refiners are bracing for higher crude costs as the US Senate passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which allows the US president to impose tariffs up to 100% on top importers of Russian oil and gas. The bill will be taken up in the House of Representatives next month. Russian crude accounts for about 48% of imports by Indian state-run refiners.

Economist Santosh Mehrotra has warned that a sharp cut in Russian crude purchases could raise inflation and pressure the rupee and current account. India’s crude import bill surged 60% year-on-year to nearly $49.8 billion in the April-June quarter. Every $1 per barrel increase in crude prices adds about Rs 18,000 crore to India’s annual import bill, NDTV Profit reports. Indian refiners may fall back on West Asian crude if Russian oil is sanctioned, but that would be costlier due to longer routes and higher insurance, according to Livemint.

State-run refiners have supplies tied up for the next 50 days, so immediate impact is not expected. Tenders for supplies beyond September are likely around mid-August. Analysts say replacing Russian crude at current volumes would be challenging and could tighten global oil balances, pushing prices higher. India will continue to seek commercially viable options for energy security.