NEW DELHI: In a hard-hitting response to Western media reports criticising India’s crude oil purchase from Russia, the Petroleum Ministry on Wednesday said it was routine in nature. Too miniscule in comparison to the country’s total oil consumption. India’s critics should desist from unnecessarily policising the issue, the ministry added.
“India’s legitimate energy transactions cannot be politicised. Energy flows are yet to be sanctioned,” the petroleum ministry said in a statement, noting that a series of pieces by certain media platforms makes conjectures and tries to sensationalise routine purchase of crude from Russia.
India’s energy companies buy from all major oil producers in the world, mainly from West Asia, the ministry said. In the recent past, the statement noted, the US has become a major crude oil source for India, accounting for almost $13 bn worth of energy imports, with almost 7.3% of market share of crude oil imports.
“Indian oil companies have been sourcing energy supplies from Russia, on a sustained basis, over the past several years. Yearly figures may have varied due to a variety of reasons, including operational necessities. If suddenly, now, as a huge importer of crude oil, India pulls back on its diversified sources, concentrating on the remaining, in an already constrained market, it will lead to further volatility and instability, jacking up international prices,” said the ministry.
Ever since war broke out in Ukraine, western countries have been putting pressure on India to stop purchasing crude oil from Russia. Ironically, most of the European countries are still purchasing gas from Russia, the second largest producer of natural gas in the world.
According to a report by Centre for Research on Energy and Clean Air, the European Union has imported $23bn of fossil fuels per month from Russia since the start of the war. However, India, which is the third largest oil consumer and imports 85% of crude, imports only 2% oil from Russia.
The ministry said India’s energy needs are enormous with daily consumption of 5 million barrels and a refining capacity of 250 MMTPA. On an average, India services 60 million visitors at its petrol pumps every day and has been constrained to pay ever increasing prices charged by certain oil suppliers, which is leading it to diversify its sources of procurement. “Energy demand in India remains inelastic. At current price levels, many countries in the neighborhood are facing fuel shortages due to high fuel inflation,” the statement said.
Compare the oil slide
European Union has imported $23bn of fossil fuels per month from Russia since the start of the war
India’s energy needs are enormous with daily consumption of around 5 million barrels and a refining capacity of 250 MMTPA
$13bn USA accounts for almost $13 bn worth of energy imports for India
It services 60 million visitors at its petrol pumps every single day
2% India imports only 2% oil from Russia