- By Aditya Pratap Singh
- Thu, 17 Sep 2026 03:03 PM (IST)
- Source:JND
- Saudi Aramco halts crude oil supply to India after pipeline attack.
- India faces increased costs for finding alternative oil suppliers
- Indian refineries are already struggling with high crude prices and disruptions.
In a move that could severely impact India’s oil inventory and import bill, Saudi Aramco has said that it will stop supplying crude oil to Indian refiners until further notice due to an attack on Saudi’s critical East-West Pipeline, according to a report in The Economic Times.
Saudi Arabia is one of the top oil suppliers to India, ranked third with 390 million barrels per day (kbpd) in August 2026. The development will weigh further pressure on Indian refineries, which are already facing immense difficulties due to elevated crude prices, higher transportation costs and disruptions to traditional supply routes–including the ‘Strait of Hormuz’, the report said.
India’s Top Oil Suppliers
According to a report in Business Standard citing maritime intelligence and research firm Kpler, Russia was expected to emerge as India's top oil supplier in August 2026 with a supply of around 2.1 million barrels per day (mbpd)--till August 27.
Russia was followed by the United Arab Emirates (UAE) at 611,000 barrels per day– 611 thousand barrel per day (kbpd), and Saudi Arabia at 385 kbpd.
Venezuela was the fourth largest oil supplier to India at 383 kbpd, followed by Nigeria at 129 kbpd, and Brazil at 120 kbpd.
Supplier / Country | Supply Volume (August 2026) |
|---|---|
Russia | 2.1 mbpd (2,100 kbpd) |
United Arab Emirates (UAE) | 611 kbpd (611,000 bpd) |
Saudi Arabia | 385 kbpd |
Venezuela | 383 kbpd |
Nigeria | 129 kbpd |
Brazil | 120 kbpd |
Gulf Region And Saudi Arabia
Saudi Arabia and the UAE accounted for nearly a million barrels per day of oil imports in August, 2026. The supply closure from Saudi could be hard hit as India has to find a replacement, which could be costly.
The development came amid growing supply chain disruption–especially for crude from the Gulf region.
Higher Replacement Costs: Finding alternative suppliers to replace Saudi barrels will be expensive as crude prices are high in global oil benchmarks and the spot market.
Surging Tanker Freight Rates: Refiners are facing increased transportation costs. This could add another layer of expense to crude procurement from other sources.
Fading Russian Discounts: According to the ET report, discounts on Russian crude have narrowed or disappeared. This could make an alternative source less attractive on price.
Broader Sourcing Required: With the Saudi’s Aramco developments, Indian Refiners may need to source crude from other geographies, which can further increase overall procurement costs.