Petroleum Minister Hardeep Puri justifies oil import from Russia as Saudi and Iraq charge premium from India

By Team Asianet Newsable | First Published Jan 17, 2024, 5:40 PM IST

India was once again questioned by the Western media over Oil imports from Russia amidst the Russia-Ukraine conflict. Indian Petroleum Minister Hardeep Singh Puri gave the reason behind New Delhi's move and the further plan for energy diversification.

A lot of noise made its way from the West on morality after India made the decision to import oil and other petroleum products from Russia despite sanctions. New Delhi didn't budge from the decision despite lectures from the West after Russia’s invasion of Ukraine. Hardeep Singh Puri was once again pondered by the Western media over India's so-called moral responsibility.

OPEC+ countries announced production cuts after the Russia-Ukraine war which significantly raised the crude price in the global market. Despite an uncertain global market and dwindling world economy, the OPEC+ group acted like a cartel prioritizing profit and holding other nations in ransom by announcing multiple production cuts.

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Oil-producing giants like Saudi Arabia and Iraq announced charging a premium rate for Asian markets whose consumption is the highest. Saudi Arabia and Iraq account for the top two oil suppliers to India and the decision of a premium rate significantly affected the Indian market. The Central leadership in New Delhi decided to move away from Saudi Arabia and Iraq.

Russia, whose economy suffered due to sanctions from the West, announced discounted prices for their oil and petroleum products. India seized the opportunity and has been importing oil from Moscow which has saved billions of dollars. Russia, which accounted for only 0.2 percent of oil imports for India, rose as India's biggest oil importer. Saudi Arabia and Iraq slipped as India cut down on buying their oil due to the premium rate.

New Delhi diversified its oil imports from 29 countries to now 37 countries. Saudi Arabia's ARAMCO company reduced its oil prices for the Asian market this month. Indian Petroleum and Natural Gas Minister Hardeep Singh Puri spoke on India's oil import from Russia and energy diversification due to the OPEC+ oil group at the World Economic Forum in Davos, Switzerland.

Hardeep Singh Puri said, “Iraq followed Saudi Arabia in charging a premium for oil supplies to Asian markets which made their crude more expensive than crude sourced elsewhere. I didn't tell them to reduce it but they did it because they also wanted to. If you look at the Indian figures in the last 2-4 years, some of the major suppliers suddenly became number three and somebody who had only 0.2% (import share) went up.”

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