NEW DELHI: As US President Donald Trump has threatened secondary sanctions on the import of Russian crude, Petroleum Minister Hardeep Singh Puri said India is not concerned about sanctions on Russian crude, as there are enough supplies in the market.
He also said that Oil Marketing Companies (OMCs) may reduce petrol and diesel prices in the next quarter if global crude oil prices remain around $65 per barrel.
Speaking at the Urja Varta 2025 event organized by the Directorate General of Hydrocarbons, Minister Puri said, “I’m not worried at all. If something happens, we’ll deal with it. India has diversified its sources of supply — we’ve gone from buying oil from about 27 countries to around 40 now.” He added that increased oil supply would continue to stabilize global prices, which currently hover around $65 per barrel.
President Trump recently warned of “biting” secondary sanctions — including tariffs of up to 100% — on buyers of Russian exports unless a peace deal is reached in the Russia-Ukraine conflict within 50 days.
"We are one of the few countries in the world where prices have actually come down over the last three and a half years… Now, the inventory I'm holding was bought at $75 a barrel, a month ago. As this inventory gets consumed slowly, if prices remain at current levels, my short answer is yes,” said the minister.
The minister emphasized that despite global conflicts — including those in Iran, Israel, Gaza, and elsewhere — which could have affected crude supply and prices, the global oil market has remained largely stable.
“In fact, even amid widespread concerns that the Strait of Hormuz might be shut — a real possibility in a military scenario — the market did not react in a way that caused prices to spiral,” he said.
Puri added that during recent tensions between Iran and Israel, Indian oil companies maintained healthy stock levels of crude, ranging from 21 to 25 days. “What’s interesting is that despite all this, prices have remained within the current band,” he remarked.
The last revision in domestic prices was a ₹2 per litre cut in mid-March 2024, ahead of the general elections. As of now, petrol is priced at ₹94.72 per litre in Delhi, while diesel is at ₹87.62.
The minister also said that during the recent West Asian conflict and concerns over a blockade of the Strait of Hormuz, Indian state-run OMCs had 21 days of inventory. “We have 21 to 25 days of oil stock. Even if the Strait is closed for a few days, we can manage. I’m not unduly worried,” he said.
On 16 July, NATO Secretary General Mark Rutte said that countries like India, China, and Brazil could be hit very hard by secondary sanctions if they continued to do business with Russia. Meanwhile, GTRI, an India-based think tank, said India should keep buying Russian oil as long as it helps contain energy costs.
GTRI said that on the war in Ukraine, India has stayed neutral and should not change that stance due to US threats. Russia continued to be the top supplier to India for the past two years, accounting for about 35% of India's overall supplies. India imported 4.66 million barrels per day (mbd) of crude oil and condensates in June 2025, slightly down from 4.72 mbd in May, according to data from shipping analytics firm Vortexa.
Russia continued to be India’s top crude supplier, followed by Iraq, Saudi Arabia, the United Arab Emirates, and the United States. The report highlights a marginal month-on-month increase in crude imports from the US, rising to 2.98 mbd in June from 2.63 mbd in May.