The bill has already become a political issue in India, with the opposition urging Modi to adopt a tougher stance. Any hike in pump prices would be risky for Modi, whose party faces elections in India's most populous state, Uttar Pradesh, in Punjab and in Modi's home state of Gujarat starting early next year. Modi's BJP runs both Uttar Pradesh and Gujarat.
Before Trump, India was courted by the United States for decades as a strategic counterweight to China, but the world's fifth-largest economy has repeatedly been left reeling over the past year by decisions taken in Washington.
After Russia's invasion of Ukraine, India sharply increased purchases of discounted Russian crude, which now account for more than 40% of India's overall oil supplies. The stepped-up purchases were partly the reason Trump imposed tariffs of as much as 50% on Indian goods in August 2025, among the steepest levied on any country.
In February, Trump rolled back those duties in exchange for what he said was India's commitment to halt Russian oil purchases and lower trade barriers.
But New Delhi only briefly reduced purchases from Russia in early 2026. They have since jumped, especially since the supply shock that followed the US and Israeli attack on Iran.
New Delhi has repeatedly resisted pressure to scale back purchases, arguing that its large population and growing economy need secure, affordable and reliable energy supplies. Indian refiners have already secured crude supplies for September and October that include Russian oil, sources familiar with the matter have told Reuters.
Indian analysts said the country's purchases of Russian oil were not financing the Ukraine war, but only helping stabilise global supplies and keeping domestic prices in check.
"Tariffs of up to 100% would punish Indian exporters and American consumers, disrupt trade and give the US president excessive power over major partners," said Ajay Srivastava, founder of New Delhi-based think tank Global Trade Research Initiative and a former trade ministry official.
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