India Will Continue Buying Russian Crude Oil if Discounted, Says Hardeep Singh Puri

In a candid statement during a recent media briefing, Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, affirmed that India’s crude oil procurement strategy remains driven by economic viability. Puri confirmed that the country would continue purchasing oil from Russia if offered at discounted prices, highlighting that the government’s focus is on securing the most affordable energy resources for its refineries.

Significant Increase in Russian Crude Oil Imports

India’s reliance on Russian crude has seen a remarkable shift in recent years. From a mere 0.2% of total imports in February 2022, Russia now supplies approximately 30% of India’s crude oil. This surge is attributed to the competitive pricing of Russian crude, which has become a key factor in India’s evolving energy procurement strategy.

“If oil from Russia is available at a discount, we will buy it. We are always looking for the best economic deals, and that applies across the board,” Puri stated, reinforcing India’s commitment to purchasing the most affordable crude oil available.

Flexibility in Procurement: No Fixed Quantities

Minister Puri emphasized that India’s procurement strategy is flexible. “We are not committed to any specific quantity from any supplier. The objective is to purchase the most economically priced crude that suits the needs of our refineries,” Puri said. India’s procurement process involves issuing tenders based on specific import requirements, with payment terms generally in US dollars. However, Puri noted that the government is exploring local currency options for energy transactions.

Energy Supply Outlook: Abundant Oil and Refining Expansion

Puri also assured that despite certain production cuts by major oil producers, the global crude oil market is experiencing an increase in supply. This will help maintain steady availability for countries like India, which is diversifying its energy sources.

Regarding India’s refining infrastructure, Puri discussed the Ratnagiri Refinery project. The original 60-million metric tons per annum refinery plan has been reconsidered due to its size. The government is now considering a revised proposal for three refineries, each with a 20 million metric tons per annum capacity.

Additionally, India’s refining capacity is set to expand from 268-270 million metric tons per annum to 310 million metric tons per annum, strengthening the nation’s position as a global refining hub.