India will not bow down: Even after the action of Trump administration, crude oil is coming from Russia, will the prices of petrol become cheaper?

Global politics regarding crude oil has become heated since the Russia-Ukraine war, but India has once again made it clear that it is not going to come under anyone’s pressure. Despite the end of the concession period given by America on Russian oil, India will continue to buy crude oil from Russia. A senior Petroleum Ministry official on Monday bluntly said that India has continued to buy Russian oil before, during and after the relaxation of US sanctions and this trend does not seem to be stopping in the future.

Market experts and refiner companies have also indicated that despite the recent expiry of the US exemption, there has been no impact on the oil supply in the country. Sujata Sharma, Joint Secretary, Petroleum Ministry, made it clear during a media briefing that India’s purchase of crude oil from Russia does not depend on any country’s concessions or conditions, but is entirely determined by India’s commercial interests and the country’s needs. He stressed that we were buying oil from Russia even before the concession, bought during the concession and are buying now.

India’s decision hinges on commercial deal

The Ministry has made it clear that the decision to purchase oil is completely based on commercial understanding (commercial deal). There is no shortage of crude oil in the country and adequate supply of oil has already been secured for the general public. According to the government, whether the US sanctions are exempted or not, it will have no impact on India’s oil supply.

This statement comes at a time when the US refused to extend the relaxation given on the weekend on some purchases of Russian crude oil. Under this exemption, those Russian oil tankers which were already loaded with oil were allowed to enter. America first gave this relief in March and later extended it till May 16 so that oil prices do not increase in the global market. Although there is no complete ban on Russian oil, Washington has been continuously pressurizing India not to buy cheaper oil from Moscow.

Refineries got relief due to low domestic demand

According to a report, at present the domestic demand for oil in India is slightly low, along with the immediate supply of crude oil is available from America, United Arab Emirates (UAE), Oman and Iraq. Because of this, Indian refiner companies are fully prepared to deal with any emergency or supply disruption. Apart from this, at present China’s purchases in the international market are limited, due to which India is benefiting. At the same time, the plants of Reliance Industries Limited (RIL) and Nayara Energy Limited are closed due to maintenance work, due to which there has been a slight decrease in the purchases from private refineries.

Since the year 2022, when Western countries imposed economic sanctions on Russia after the Ukraine war, Russian crude oil available at discount has become a major support for India. However, due to heavy pressure from America last year, Indian refineries had taken steps back for some time, but later India surprised everyone by breaking records in imports.

Russian oil imports skyrocketed in May

According to the latest data from Kpler, India’s Russian oil imports in May are expected to be around 19 lakh barrels per day, which is very close to the all-time high. The report also revealed that the amount of Russian crude oil stored in ships (floating storage) worldwide has increased to more than 7 million barrels, which is five times more than last month. The main reason for this is that due to the maintenance work of refineries in India, the processing of crude oil has slowed down a bit.

Sumit Ritolia, Refining Manager, Kappler Limited, says that in the current global market, which is already struggling with Middle East tensions and geopolitical uncertainty, it is impossible to find any alternative to Russian oil at the level and price. Therefore, there is very little hope that India will distance itself from Russian oil in the future.

India has 60 days advance backup

Indian refineries are still hopeful that America may increase this exemption once again in the coming days. However, US Treasury Secretary Scott Besant had said in April that this relief would not be extended further, but the administration later extended it for some time.

Here, India has made complete preparations for its security. Oil Minister Hardeep Singh Puri has informed that India has strong reserves of crude oil and LNG for about 60 days, while the stock of LPG is also enough for 45 days. Hindustan Petroleum Corporation (HPCL) Chairman Vikas Kaushal also assured the investors that we have not faced any problem in getting the crude oil of our choice. He said jokingly that of course, I would like to get this oil 30 dollars cheaper than the market price, but the country has no problem on the supply front.