NEW DELHI: The government on Monday informed that it has no plans to pay in Rupees for the purchase of crude oil from Russia. Minister of State for Petroleum and Natural Gas Rameswar Teli, in a written reply in Rajya Sabha said oil public sector undertakings have no such contract or proposal under consideration from Russia or any other country.
“At present, oil public sector undertakings neither have any contract nor is any such proposal under consideration from Russia or any other country for the purchase of crude oil in Indian rupees,” Minister of State for Petroleum and Natural Gas Rameswar Teli said in a written reply to the Rajya Sabha.
India is the world’s third-largest oil consumer and it imports to meet 85% of its needs. It mainly imports from the Middle East, Africa and North America. From Russia, India imported 43,400 barrels per day of oil in 2021, making up for less than 1% of all oil imports. India also buys 2.5 million tonnes of LNG a year from Gazprom of Russia.
However, the invasion of Russia on Ukraine has promoted many countries to stop dealing with Russian companies. It led to Russian crude being available in the market at deep discounts and gave a way to talk of a rupee trade for the oil and gas purchases. Recently, Indian Oil Corporation (IOC) has bought two parcels or shiploads of distressed Russian oil through traders at deep discounts.
IOC bought three million barrels in each trade through European trader Vitol. Hindustan Petroleum Corporation Ltd (HPCL) bought two million barrels of Russian crude Urals through a trader. India believes Western countries haven’t banned oil and energy trade with Russia as they did with Iran, over its controversial nuclear programme.
Transport fuel witnesses sixth hike in a week
Oil Marketing Companies on Monday hiked the price of petrol and diesel by 30 paisa and 35 paisa respectively, taking the total increase in rates in the last one week to I4-4.10 per litre. As per the price notification by the state fuel retailers, petrol in Delhi will now cost I99.41 per litre as against I99.11 previously while diesel rates have gone up from I90.42 per litre to I90.77, according to a price notification of state fuel retailers. This is the sixth hike in the past one week.