New Delhi New Delhi: BRICS member India has become Europe's top refined fuel supplier, overtaking Saudi Arabia, according to a report by trade intelligence firm Kpler. Europe's refined oil imports from India are expected to exceed 360,000 barrels per day in the wake of new Western sanctions on Russian oil, leading to significant changes in global energy trade routes. Saudi Arabia is one of the world's leading oil producers and has maintained a dominant position in the oil trade for decades. However, with Russia's exit from the European market, the continent is looking for new options to secure its fuel supplies.
Before the Russia-Ukraine conflict, Europe imported an average of 154,000 barrels of oil a day from Indian refiners. The number rose to 200,000 barrels per day after the European Union imposed sanctions on Russian oil on February 5. Kpler estimates that India's Russian oil imports could exceed 2 million barrels per day by April next year, accounting for 44% of India's total oil imports, the report shows. Prime Minister Modi has focused on strengthening relations with European countries, thereby establishing India as a reliable energy partner. This includes active participation in bilateral negotiations aimed at improving energy trade.
India has been able to buy Russian crude at concessional rates of less than $60 a barrel, especially following Western sanctions. This has provided Indian refineries with a competitive edge in sourcing raw materials. “When the world was facing fuel challenges, your support helped us meet the petrol and diesel requirements of the people in India. That's all No, the world should recognize that the India-Russia agreement on fuel has played a big role in bringing stability to the international market.” Prime Minister Modi addressing the media in Moscow earlier this year.
India has significant refining capacity, enabling it to process large quantities of crude oil into refined products. Using its extensive network of refineries, India can effectively convert low-cost Russian oil into fuel, which is in high demand in the European market. India's actions fully align with Europe's acute energy needs, helping the country take advantage of increased demand and position itself as a significant player in the refined fuels market.
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