India’s energy market is witnessing intense competition between the U.S. and Russia, as both nations aim to increase their share in the world’s third-largest energy consumer. Russia has become India’s largest crude oil supplier, accounting for over 50% of imports in some recent months. Meanwhile, the U.S. dominates in providing liquefied petroleum gas (LPG) and liquefied natural gas (LNG), which are critical to Indian households and industries. The Iran war and shifting geopolitical alliances are playing significant roles in reshaping India’s energy sourcing strategies.

The U.S. has notably urged India to reduce its reliance on Russian crude by turning to Venezuelan oil. Although Venezuelan and U.S. crude together now make up about 11% of India’s imports, replacing Russian barrels completely remains challenging. This is due to the specific refinery configurations in India, which are better equipped to process the medium to heavier crude oil types found in Russia and Venezuela, whereas U.S. crude is generally lighter. Indian refiners have ramped up Venezuelan crude purchases since March 2026, growing from no imports to roughly 383,000 barrels per day by August.

Russian President Vladimir Putin recently reaffirmed Russia’s commitment to expanding oil exports to India, signaling confidence in Moscow’s growing share despite increased U.S. tariffs and political pressures. Russian oil exports to India rose nearly 60% between April and July compared to the previous year. On the other hand, the U.S. has leveraged diplomatic pressure, including imposing and then adjusting tariffs, to encourage New Delhi to shift away from Russian energy. Despite these efforts, India insists that its energy decisions are driven solely by the need for energy security rather than external political pressures.

Looking ahead, a proposed U.S. Russia Sanctions bill could reinstate tariffs reaching 100% on countries importing Russian energy. This has the potential to disrupt trade further, but experts believe that, due to tight global energy supplies, India’s dependence on Russian crude is unlikely to diminish immediately. The interplay between geopolitical strategy and practical economic considerations continues to define the competitive dynamics of India’s energy import landscape as the country balances its growing demand with complex international relations.