Trump Tariff: Petroleum Ministry Evaluates Russia Penalty; Awaits Executive Directive
India has diversified its crude basket in recent years, but the scale of imports from Russia is up nearly tenfold since 2021.
The Ministry of Petroleum and Natural Gas is currently assessing the potential impact of U.S. President Donald Trump’s newly announced 25% tariff on Indian exports. The announcement also states that an additional penalty will be imposed due to India's crude oil imports from Russia. Senior government officials told NDTV Profit that the ministry is awaiting formal executive directives on specific measures.
The US tariff announcement, made late Wednesday, has raised concerns across India’s energy sector, particularly as Russian crude now accounts for nearly 35–40% of India’s total oil imports. India’s energy bill could see a sharp spike if Russian supply is disrupted, a senior official said, adding that refiners may be forced to turn to alternative sources such as the U.S. and Brazil.
India has diversified its crude basket in recent years, but the scale of Russian imports, up nearly tenfold since 2021, makes any abrupt shift both costly and complex. Sources to NDTV Profit also raised concerns over tariff-driven disruptions which may push up global crude prices.
The prices have already begun inching upward amid fears of supply constraints.
In a fresh post on his social media channel Truth Social, Trump commented and said, “I don’t care what India does with Russia… Their tariffs are among the highest in the world,” he posted, while also taking aim at Russia’s former president Dmitry Medvedev.
The upheaval comes after Trump announced a 25% levy plus penalties on Indian goods over purchasing oil from Russia and association with BRICS on Wednesday evening.
