NEW DELHI (Agencies): In a strategic shift, India has adopted a dynamic approach to its crude oil purchasing policy, as affirmed by the country’s Oil Minister, Hardeep Singh Puri.
The nation is now committed to procuring crude oil from any viable source offering the most competitive prices. Minister Puri conveyed this directive to broadcaster ET Now on Wednesday.
With Russia emerging as a key player in India’s oil imports, the nation has experienced a notable surge in its crude purchases from Moscow.
In response to sanctions related to the Ukraine crisis, Russia strategically redirected its oil flows towards Asian markets, positioning itself as India’s foremost crude supplier.
The guiding principle of the new policy is clear – India is open to sourcing oil from across the globe, as long as it can be delivered to its designated ports at the lowest attainable price. This reflects India’s determination to secure its energy needs through cost-effective means. India, a significant player on the global stage as the third-largest consumer and importer of crude oil, has consistently imported over 80% of its oil requirements.
The country’s bilateral relationship with Russia has flourished in this context, with India evolving into one of the largest purchasers of Russian oil. The strategic alliance has been bolstered by India’s decision not to adopt sanctions and capitalize on Russia’s incentivizing discounts. While embracing this newfound flexibility, Indian authorities remain committed to respecting the stipulated price ceiling for Russian crude, set at $60 per barrel.
This ceiling includes expenses related to shipping, freight, customs, and insurance. Highlighting the effectiveness of this approach, India’s imports of Russian oil reached a historical pinnacle in June. During that month, the nation’s daily imports of Russian oil surged to 2.2 million barrels, outstripping the combined supplies from Saudi Arabia and Iraq. This marked the tenth consecutive month of rising volumes, as per data tracked by Kpler and cited by Bloomberg.
The recalibration of India’s oil policy underscores its adaptability in a dynamic global energy landscape, where cost-efficiency and strategic partnerships are paramount.