Russia will see revenue from its biggest single oil tax double to $9 billion in April due to the oil and gas crisis triggered by the US and Israeli attack on Iran, Reuters calculations showed on Thursday.

The Reuters calculation is some of the first concrete evidence of a windfall for Russia, the world’s second-largest oil exporter, from the Iran war, which oil traders say has triggered the most serious energy crisis in recent history.

Iran effectively shut the Strait of Hormuz — a route for about a fifth of global oil and LNG flows — after US and Israeli airstrikes on Iran at the end of February, sending Brent futures shooting well past $100 per barrel.

Russia’s main revenue from its vast oil and gas industry is based on production. Export duty on crude oil has been nullified from the start of 2024 as part of the so-called wider tax manoeuvre, a years-long tax reform of the industry.

According to Reuters calculations based on preliminary production data and oil prices, Russia’s mineral extraction tax on oil output will increase in April to around ₽700 billion ($9 billion) from ₽327 billion in March. The revenue is up by some 10% from April last year.

For the whole of 2026, Russia has budgeted for ₽7.9 trillion from the mineral extraction tax.

Russian energy in demand

The average price of Russia’s Urals crude, used for taxation, jumped to $77 per barrel in March, its highest since October 2023, according to economy ministry data.

That was up 73% from February’s $44.59 per barrel and above the level of $59 assumed in this year’s state budget.

The Kremlin said on Tuesday there were a huge number of requests for Russian energy from a range of different places amid a grave global energy crisis that was shaking the foundations of the oil and gas markets.

Still, there are limits on the windfall for Russia, and economists inside Russia have repeatedly cautioned that 2026 could be a tough year.

Russia ran a budget deficit of ₽4.58 trillion, or 1.9% of gross domestic product, in January-March 2026, the finance ministry said on Wednesday.

And Ukraine’s attacks on Russian energy infrastructure, with an aim to cripple Moscow’s finances, have also contributed to lower earnings and threaten oil production cuts.

The size of the windfall for Russia will ultimately depend on how long the Iran crisis lasts.

The Centre assured that LPG supply across the country is normal, despite rising tensions in the Middle East, with shipments sailing through the Strait of Hormuz without any disruption. Dismissing fears of any shortage in the nation, petroleum and natural gas secretary Neeraj Mittal, on Thursday, said that domestic availability remains stable. “I don’t see any problem anywhere. All domestic supplies are at 100 per cent,” he stated, adding that around 70 per cent of packed LPG has already been released into the system.While acknowledging the possibility of minor, localised supply bottlenecks, Mittal said such issues are routine and managed on a day-to-day basis.He also addressed concerns over maritime movement in the region, noting that vessel traffic has not faced delays. “Ships have been continuously coming even when there was a blockage. It takes its normal travel time. We are not talking about any delay in crossing the Strait,” he said.According to Mittal, the government is closely tracking developments and remains prepared to act if needed. “The government is reviewing this on a daily basis. If any change has to be made, it will be done,” he said.Speaking at a conference on energy security and India’s growing gas demand, Mittal further emphasised the need for preparedness in light of recent global developments. He highlighted that nearly 90% of India’s crude oil imports pass through the Strait of Hormuz, underlining its strategic importance.He further noted that India sources crude oil from 41 countries, natural gas from 30 countries, and LPG from 13 countries, stressing that such diversification plays a key role in shaping future energy policies.“The government is committed to ensuring that gas is available to all entities, and we are also focusing on diversification so that such crises do not impact supplies,” he said. Meanwhile, Green Asha, a fuel carrier with over 15,400 tonnes of LPG, also arrived in the country on Thursday after crossing Strait of Hormuz earlier this week.The conference, organised by the petroleum and natural Gas regulatory board (PNGRB) in partnership with Indraprastha Gas Limited (IGL), brought together stakeholders to discuss the expanding role of natural gas in the country’s energy mix.Discussions at the two-day event focused on infrastructure investment, regulatory support, and addressing sectoral challenges, while also encouraging innovation as India works to strengthen its energy security in the face of global uncertainties.