India could double US energy purchases this year

India's purchase of United States crude oil has picked up in 2025 and could easily double their previous levels, government officials said on Wednesday.

- BY S VENKAT NARAYAN OUR SPECIAL CORRESPONDENT

The surge comes in the wake of the Donald Trump administration's announcement that it will hike tariffs on a reciprocal basis, especially on those countries with large trade surpluses with the US, to push them buy more of its energy.

India runs a $36-billion trade surplus with America.

In April, India's crude oil purchases from the US surged to their highest level in 27 months as state-run oil companies pressed the pedal on sourcing liquefied natural gas (LNG) from US projects. New Delhi is racing to conclude a bilateral trade agreement with Washington D.C., according to industry sources and ship tracking data.

State-run oil companies are leading the charge for New Delhi by increasing US energy purchases. Private refiners have turned more cautious, weighing profitability and margins, industry officials said.

State-run refiners, led by Indian Oil and Bharat Petroleum, accounted for over 70 per cent of US crude to India in April at 336,000 barrels per day (bpd), with Reliance Industries accounting for the rest, initial estimates from ship tracking data show.

State refiners opt for higher quality, more expensive grades, while Reliance buys cheap, discounted oil with higher sulphur content because its refineries are advanced.