Russia has overtaken the United Arab Emirates as India’s top naphtha supplier for 2024-25, driven by discounted pricing and increased import volumes. Indian refiners are leveraging these lower costs to meet rising domestic demand.
Russia has surpassed the United Arab Emirates (UAE) as India’s largest naphtha supplier in the financial year 2024-25, according to preliminary ship-tracking data. This shift in trade dynamics is driven by Russia offering competitive pricing, making its shipments more attractive to Indian refiners seeking cost-effective imports.
Naphtha is a crucial feedstock in the petrochemical and refining industries, used for producing gasoline, plastics, and other chemical products. The sharp increase in imports from Russia comes as Indian refiners capitalize on discounted Russian cargoes. This strategic shift is expected to continue, as refiners aim to optimize costs in response to rising domestic demand.
Russia has now accounted for over half of India’s total naphtha imports, significantly reducing the UAE’s market share. The trend reflects the broader global energy trade realignment, where Russia has sought alternative buyers due to Western sanctions and price caps.
Indian refiners have increasingly turned to Russia for energy resources, including crude oil and petroleum products. This growing economic partnership highlights India’s approach to diversifying energy suppliers while ensuring affordability and stability in imports.
Market analysts expect this shift to persist, as India’s refining sector continues to expand, and Russian suppliers remain competitive in pricing. The increased reliance on Russian naphtha underscores India’s pragmatic approach to securing energy resources amid evolving global trade patterns.
