Washington DC [US], March 6: With the crisis in the Gulf severely hampering shipping routes that pass through the Strait of Hormuz, the United States on Thursday (local time) allowed a 30-day waiver for India to purchase Russian oil to meet its energy requirements.
Temporary relief for Indian refiners
US Treasury Secretary Scott Bessent said, “President Trump's energy agenda has resulted in oil and gas production reaching the highest levels ever recorded. To enable oil to keep flowing into the global market, the Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil.”
He added that the measure is intended as a short-term solution. “This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorizes transactions involving oil already stranded at sea.”
US expects India to increase American oil purchases
Bessent further said that India remains an important partner for the United States. “India is an essential partner of the United States, and we fully anticipate that New Delhi will ramp up purchases of U.S. oil. This stop-gap measure will alleviate pressure caused by Iran's attempt to take global energy hostage,” he said.
Waiver comes amid Gulf crisis
The waiver comes at a time when India continues to face potential risks linked to energy supply disruptions in the Middle East amid escalating tensions in West Asia after a joint US-Israel military strike on February 28 on Iranian territory resulted in the death of its Supreme Leader, Ayatollah Ali Khamenei, and other senior figures.
Strategic importance of Strait of Hormuz
India sources nearly 40 per cent of its oil imports from the region, with a significant portion transported through the strategically important Strait of Hormuz.
Any disruption along this key maritime route can have significant implications for global oil supply and pricing.
India reviewing energy situation regularly
According to sources, India is reviewing its energy situation twice a day and is currently in a comfortable position regarding energy security.
Sufficient stock and diversified sourcing
India’s current stock position is also considered comfortable, with supplies being replenished daily. As per sources, there is no shortage of LPG, LNG or crude oil globally.
Sources also noted that India is in touch with other suppliers and has diversified its energy sourcing to manage any potential disruption.
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Government closely monitoring global market
India continues to import Russian crude as per existing contracts. The government, according to sources, is keeping a close watch on the global energy market to ensure uninterrupted supplies for the country.
(Disclaimer: Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)
