US EditionRussian Oil Reaches California via India Amid Fuel Crisis
Record imports from India are filling California’s fuel gap as refinery closures and sanctions loopholes leave the state more exposed to global supply shocks.
- California is increasingly reliant on imported gasoline refined from Russian crude, which enters the state via India through a so-called 'refining loophole,' with Reliance Industries Ltd.'s Jamnagar refinery processing discounted Russian oil into fuel for U.S. markets.
- Domestic refinery closures, including Valero Energy Corp.'s Benicia plant idled in April and Phillips 66's Los Angeles complex shut in late 2025, eliminated 17–20% of California's refining capacity, forcing greater reliance on overseas imports.
- Shipping data shows more than 9 million barrels arrived via the loophole in 2025, filling supply gaps left by refinery closures while pump prices in California approached nearly $6 per gallon amid the supply crunch.
- Treasury officials extended a sanctions waiver on April 17, allowing these flows to continue, though critics argue the imports effectively fund the Kremlin's war effort amid heightened U.S.-Russia tensions over Ukraine.
- California's status as an 'energy island' without domestic pipeline connections to Gulf Coast refineries forces continued reliance on foreign tankers, exposing the state to global supply shocks and geopolitical vulnerability as import dependence exceeds 70% for certain fuels.
6 Articles
6 Articles
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