Key Highlights:
- India relies on affordable Russian oil to meet 85 percent of its energy imports.
- If India stops buying Russian crude, oil prices may hit USD 200/barrel.
- India says it is following international rules and will continue its purchases.
New Delhi: Tensions have flared between India and the U.S. after former President Donald Trump announced a 25 percent tariff on Indian goods. Simultaneously, the U.S. warned India to stop buying oil from Russia.
However, India has made it clear that it will continue purchasing Russian oil because it helps keep domestic energy prices affordable and inflation under control.
According to sources cited by ANI, if India halts its Russian oil imports, global oil prices could surge to USD 200 per barrel, creating turmoil across energy markets worldwide.
Russia is World’s 2nd Largest Producer, India is 3rd तargest Consumer
Russia is the second-largest crude oil producer globally, pumping around 9.5 million barrels per day—approximately 10 percent of global demand. It also exports about 4.5 million barrels of crude oil and 2.3 million barrels of refined products daily.
India, on the other hand, is the world’s third-largest energy consumer and relies on imports for about 85 percent of its oil needs. Russian oil is cheaper for India, helping to manage the country's fuel bill during turbulent global conditions.
India Denies Reports of Halting Russian Oil Imports
Earlier reports claimed that Indian oil companies like Indian Oil Corporation, Hindustan Petroleum, and Bharat Petroleum had reduced Russian oil purchases due to shrinking discounts and shipping challenges.
But Indian sources have denied these claims, stating clearly that Indian refineries are still buying Russian crude.
They added that there are no international bans on purchasing Russian oil. The G7 and European Union have only imposed a price cap to prevent Russia from making excessive profits, not a trade ban.
India’s Smart Energy Move Helped Global Stability
Indian officials emphasised that all Russian oil purchases comply with international norms.
They further stated that when OPEC+ countries cut production, India's decision to buy discounted Russian oil prevented further price hikes. Without India’s actions, global inflation could have worsened.
India acted as a responsible buyer, helping maintain balance in the volatile energy market.
