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In what looks like a direct response to the ‘Russia Sanctions Act’ being signed into law that month, India in September 2026 slashed its oil imports from the U.S. to zero, and drastically cut down its imports of Russian oil, the latest official data shows.
Instead, India turned to the UAE for its oil requirement, with that country’s share rising to more than one-fourth of India’s oil imports. As a result, India’s crude oil sourcing remains highly concentrated, with just two countries — Russia and the UAE — accounting for 60% of all oil imports.
The U.S. House of Representatives on September 16 passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which was then signed into law by President Donald Trump on September 18. The law empowered the U.S. to levy tariffs of up to 100% on countries such as India and China that imported large quantities of Russian oil and gas.
The tariffs are currently in abeyance, with Mr. Trump on October 16 signing an executive order temporarily waiving the tariffs and submitting a certification to the U.S. Congress saying that the pause was in the U.S.’ national interest. Indian government data on October oil imports will be released next month.
Elevated oil prices continue to hurt
India imported 209.4 lakh tonnes of crude oil in September 2026, which was 9.5% higher than in August, and 4.1% higher than in September last year.
However, as has been the case in the last six months or so, elevated crude oil prices have meant that India’s oil import bill has swelled far faster than the growth in the actual quantity of oil being imported.
The data shows that India’s oil import bill of nearly $14.3 billion in September 2026 was 16.4% higher than the bill in August, and a much more significant 33% higher than in September 2025 when oil prices were relatively more benign.
Cooling off on Russian oil?
Russia’s share in India’s oil imports has recently been broadly following the U.S.’ actions regarding such imports.
Most recently, Russia’s share climbed to an all-time high of around 51% in July 2026, capping off a steady climb since February when the U.S. scrapped its Russian oil-linked penal tariffs on India. This also coincided with the closure of the Strait of Hormuz due to the war in West Asia and the resultant supply constraints from that route.
However, Russia’s share has fallen since then — to 44% in August, and further to 33% in September, when the ‘Russia Sanctions Act’ was signed into law. In volume terms, while India increased its overall oil imports in September, it cut its Russian imports by nearly 18% as compared to August.
A previous analysis by The Hindu shows that, before the penal tariffs were removed in February, India had been cutting down on its oil imports from Russia in line with U.S pressure.
Dropping U.S. oil, turning to UAE
The official data shows that India did not import any oil from the U.S. in September 2026. American oil had averaged a little more than 5% of Indian oil imports in the 12 months prior to that. This, too, coincided with the signing into law of the ‘Russia Sanctions Act’ in September.
India turned to the UAE instead to make up the shortfall created by its cutting down on American and Russian oil. India’s imports of oil from the UAE grew 67% in September 2026 as compared to August, and by 109% compared to September last year.
As a result, the UAE’s share in India’s oil imports grew to 26.5% in September 2026, an all-time high.
Published – October 30, 2026 05:13 pm IST
