India’s pays record $6.4 billion to import Russian crude oil in October

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Closure of Strait of Hormuz pushes up freight insurance costs

By Rishi Ranjan Kala

Updated - November 12, 2026 at 10:24 PM. | New Delhi, November 12

India paid a record € 5.8 billion, or roughly $6.43 billion, during October 2026 to import Russia crude oil as closure of the Strait of Hormuz (SoH) pushed up freight and insurance costs, which coupled with a rising crude oil prices amidst a weak rupee shored up the geopolitically sensitive commodity’s value.

According to the Finland-based Centre for Research on Energy and Clean Air (CREA), the world’s third largest energy consumer imported a total of €6.4 billion, or more than $7 billion, of Russian hydrocarbons its - highest monthly total in data going back to January 2022.

Crude oil constituted 91 per cent of India’s purchases, followed by coal (€333 million) and oil products (€232 million), it added.

“India’s imports of Russian crude oil rose in October 2026, up 10 per cent M-o-M. Russian crude imports rose at all three of India’s largest importing refineries: Vadinar (up 12 per cent M-o-M), Jamnagar (up 22 per cent M-o-M), and Paradip (up 28 per cent M-o-M). This increase has once again made the Jamnagar refinery the biggest importer of seaborne Russian crude,” CREA Authors Luke Wickenden, Daryna Dvornichenko, and Isaac Levi said.

In October 2026, the average price of Russia’s Urals-grade crude rose by 13 per cent M-o-M to $101.7 per barrel, the highest monthly average in data going back to October 2021 and more than double the EU and UK price cap of $44.1 per barrel, which took effect on February 1, 2026 and has been capped at the same level under the EU’s 21st sanctions package, CREA said.

The price discount on Urals-grade crude oil relative to the global benchmark Brent averaged $23 per barrel (19 per cent), compared with $24 per barrel (21 per cent) in September 2026, it added.

“Global fossil fuel prices remained high in October despite month-on-month increases of 9 per cent in oil volumes and 15 per cent in LNG volumes transported through the Strait of Hormuz, as measured by detected vessel crossings. These volumes remained well below levels recorded before the US and Israeli strikes on Iran,” it added.

The Hormuz energy crisis delivered a substantial boost to Russia’s fossil fuel export earnings. For instance, in the six months since the US–Israel strikes on Iran began, higher oil and gas prices have increased Russia’s seaborne export revenues by an estimated $35.9 bn, or roughly Euro 31 billion, CREA pointed out.

Insurance & freight

According to OPEC, shipping and insurance costs increased to unprecedented levels of almost one third of the commodity’s value in 2026. Tanker rates across the year have risen significantly across all routes versus beginning of 2026 levels, with some routes witnessing about a 12-fold increase in shipping costs.

For instance, the combined cost of freight and insurance normally represents around 3 per cent of the total cost of crude or petroleum products. By January-end, the total share of freight and insurance for very large crude carriers (VLCCs) from the Middle East to East Asia was around 5 per cent of the total cost. By the end of October 2026, however, this share averaged 30 per cent of the total cost, it added.

“In 2026, freight rates for a VLCC carrying crude from the Middle East to East Asia has risen about 12 times, from $3.18 per barrel at the end of January to $37.13 at the end of October. Moreover, the cost of insurance has risen more than 200 times from $0.06 per barrel to $12.29,” OPEC pointed out.

Published on November 12, 2026

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