India has asked the United States to extend a temporary waiver allowing it to import Russian crude and petroleum products, as a U.S. Licence set to expire at 12:01 a.m. Eastern Time on May 16, 2026 threatens to force refiners onto more expensive alternatives. People familiar with the matter said New Delhi pressed Washington because instability in the Strait of Hormuz and the wider Persian Gulf is keeping global oil markets tight and driving costs higher for import-dependent India. The U.S. Treasury issued the general licence in mid-April to cover cargoes loaded on or before April 17, but it excludes transactions involving Iran, Cuba and North Korea. If Washington doesn't act again, Indian refiners may have to shift to pricier spot barrels, industry contacts warned.

India has formally asked the United States to extend a short-term waiver that permits New Delhi to accept shipments of Russian crude and petroleum products, people familiar with the matter said. The request comes as the temporary U.S. Treasury general licence issued in mid-April is due to expire at 12:01 a.m. Eastern daylight time on May 16, 2026. The licence applies only to cargoes loaded on or before April 17.

Why New Delhi wants more time

Officials in New Delhi have argued the waiver is essential because continued instability in the Strait of Hormuz and the wider Persian Gulf is keeping global markets tight and raising the cost of imports for a country that relies heavily on oil purchases. Two reports cited Kpler shipping data showing Indian refiners moved record volumes into May, with daily inflows so far this month totalling roughly 2.3 million barrels and predictive full-month flows around 1.9 million barrels per day. Industry contacts told reporters that if Washington lets the licence lapse after May 16, Indian processors could be forced to buy more expensive spot barrels from non-Russian suppliers, increasing input costs for refiners and passing pressure on to consumers.

New Delhi has already been buying Russian barrels at an accelerated pace following earlier authorisations. Two sources noted that Indian refiners increased purchases after a March authorisation. One report put post-March purchases at roughly 30 million barrels, but that figure appears in a single account and hasn't been corroborated elsewhere.

Washington's balancing act

The emergency licence is part of a U.S. Effort to balance continued pressure on Moscow over the war in Ukraine with the need to steady energy markets after a flare-up between the United States and Iran in February tightened crude flows through the Strait of Hormuz. Treasury Secretary Scott Bessent had publicly said earlier that Washington wouldn't renew prior licences covering Russian and Iranian oil. He told reporters at a White House press conference, "We won't be renewing the general license on Russian oil, and we won't be renewing the general license on Iranian oil. That was oil that was on the water prior to March 11. So all that has been used." Despite that statement, the Treasury later issued the mid-April licence that permits already-loaded Russian cargoes to proceed through the May 16 deadline.

Mastheads

The licence text makes clear the authorisation covers transactions "ordinarily incident and necessary to the sale, delivery, or offloading" of Russian crude and petroleum products loaded on or before April 17. It also explicitly excludes any transactions involving energy from Iran, Cuba or North Korea. That carve-out reflects U.S.

Policy lines even as it allows some flexibility to avoid immediate market disruption.

There are some sourcing gaps in the reporting. Multiple accounts say Indian officials requested an extension, citing people familiar with the matter. One account noted a wire service couldn't immediately verify the report, so the precise status of the formal request remains in limited dispute. Analysts and industry contacts emphasise the practical pressures at play on refiners and on fuel markets, rather than legal niceties.

Kpler's shipping data, as cited in two reports, provides the clearest picture of how quickly Indian refiners pressed to load Russian cargoes while the waiver was in force. Those flows helped explain why India would press Washington for more time. If the licence lapses, the same data suggest importers will have to redirect demand toward other producers at likely higher prices.

Indian officials and refinery operators face domestic pressures as well. One report said New Delhi is concerned about supply disruptions affecting 1.4 billion people, referencing a reported cooking gas shortage. The brief accounts don't detail the precise domestic measures under consideration, but they do show why continuity of crude supplies is a priority.

For the United States, the decision is a diplomatic and market judgement. Allowing already-loaded cargoes to continue provides short-term relief to global flows, while excluding Iranian energy keeps pressure on Tehran.

The Treasury's mid-April licence struck that balance temporarily. Whether Washington will grant another extension after May 16 will depend on calculations about energy security, diplomatic signalling, and possible repercussions for sanctions policy.

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The immediate test is the licence expiry at 12:01 a.m. Eastern daylight time on May 16, 2026; U.S. Action on any further extension after that point will determine whether Indian refiners must shift to alternative, likely costlier, crude supplies.

This article was created with AI assistance.