State-owned refinery asks suppliers to avoid Hormuz and Red Sea routes
Visual Credits: Wikimedia Commons
Geopolitical risks are now being factored into India's crude procurement. For the first time, state-owned Mangalore Refinery issued a crude purchase tender explicitly asking suppliers to avoid using the Red Sea and the Strait of Hormuz, Reuters reported. The clause effectively requires suppliers to continue using longer and costlier shipping routes regardless of how tensions between the U.S. and Iran evolve.
Analysts said the move could force Gulf exporters to offer discounts to remain competitive. It could also increase India's reliance on Russian crude, which does not pass through the Strait of Hormuz, while cargoes from the Gulf may increasingly have to take longer routes around the Cape of Good Hope.
India's crude oil import bill jumps 60% as higher prices raise fiscal risks
India paid 60% more for crude oil imports in the April-June quarter than a year earlier as elevated international oil prices pushed up the country's energy bill, according to official data cited by OilPrice. Higher import costs threaten government finances, increase inflationary pressures and widen the current account deficit. In June, consumer inflation rose to 4.38%, exceeding the Reserve Bank of India's 4% target and coming in slightly above analysts' forecast of 4.3%.
The country remains heavily exposed to disruptions in West Asia, with around 40% of its crude oil imports, 60% of LNG imports and 90% of LPG imports passing through the Strait of Hormuz. LiveMint reported that freight rates for crude shipments from Saudi Arabia could rise by 50% as vessels are forced to take longer routes, adding further pressure to India's import bill.
U.S. Senate fast-tracks bill targeting buyers of Russian oil
The U.S. Senate voted to fast-track the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which could allow President Donald Trump to impose tariffs of up to 100% on imports from countries buying Russian oil, including India and China, The Hindu reported. The earlier proposal had suggested tariffs of 500%, but lawmakers later reduced the figure.
Senator Richard Blumenthal defended the Act by saying it was “not for US allies” but for the “main culprits China and India.”
China currently accounts for around 47-50% of Russian crude exports, while India accounts for 36-38%. Russian oil made up more than 40% of India's oil imports in May and over half in June, according to the information accessed by the newspaper from India's petroleum ministry.
Centre says no decision yet to increase ethanol blending beyond 20%
The Centre told Parliament it has not decided to increase ethanol blending in petrol beyond the current 20% or introduce ethanol blending in diesel for commercial use, The Hindu reported. It said any future decision would depend on scientific evaluation, vehicle compatibility studies, stakeholder consultations and adequate domestic production.
The clarification comes amid growing scrutiny of the ethanol blending programme. A consumer court in Raipur ordered Maruti Suzuki to replace or refund a Grand Vitara after the owner alleged E20 fuel damaged the vehicle, though the company said it would challenge the ruling, arguing the vehicle was E20-compatible and the fuel was contaminated.
Separately, the Bombay High Court allowed Union Transport Minister Nitin Gadkari to pursue legal action against Meta, Google, X and others over alleged AI-generated deepfake posts falsely linking him to the ethanol blending programme, The Hindu reported.
