India will continue to buy crude oil from Russia if the prices are right, Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, stated during a media briefing on Friday. Puri underlined that India’s energy strategy focuses on affordability and economic efficiency, with the government committed to securing the best deals for its refineries.
Russia’s Rising Share in India’s Oil Imports
India’s crude oil imports from Russia have surged dramatically, growing from less than 0.2% in early 2022 to around 30% today. The increase is largely due to discounted oil prices from Russia, which have made it an attractive source for India, especially amid fluctuating global oil prices.
“If crude oil is available at a discount, we will purchase it from Russia. Our focus is always on the most economical oil available, regardless of the supplier,” Puri explained, reiterating that India is driven by price competitiveness in its oil procurement strategy.
Flexible Procurement Policy: No Long-Term Commitments
Minister Puri clarified that India’s energy policy does not bind the country to fixed oil quantities from any one nation. “We are not tied to any supplier. Our commitment is to acquire the most affordable energy that suits the needs of our refineries,” he said. Puri added that the government issues tenders based on specific import needs and is exploring opportunities to use local currencies for oil transactions in the future.
Global Oil Supply and Future Refining Plans
Addressing concerns about global oil supply, Puri reassured that despite production cuts by certain oil-producing nations, the global market remains flooded with oil. This supply boost ensures that India will have continued access to affordable energy sources.
On the domestic front, Puri provided an update on the Ratnagiri Refinery project. The government is revising plans to create three smaller refineries with 20 million metric tons per annum capacity each, replacing the original 60-million metric tons per annum plan. This change is due to the project’s scale being deemed unfeasible.
Puri also confirmed that India’s refining capacity is expanding, with plans to increase from the current 268-270 million metric tons per annum to 310 million metric tons per annum, solidifying the country’s refining strength on the global stage.
