India diversifying oil imports beyond Gulf region: Top official
New Delhi, May 29
India is diversifying its sources of oil and gas imports to make up for the shortfall in supplies caused by the choking of the Strait of Hormuz amid the West Asia crisis, a senior official said on Friday.
"Energy security is very important for us. We are trying to diversify our sources from across the world, and that is our policy at present. We welcome whatever support we can receive from various markets around the world," said Randhir Jaiswal, the Ministry of External Affairs spokesman.
He also said that 11 Indian-flagged vessels are still stuck in the Persian Gulf region.
"As many as 14 ships that were also in the Persian Gulf have already returned; they were able to cross the Strait of Hormuz and have reached India," Jaiswal added.
Meanwhile Indian oil companies have been buying more oil from Russia and African countries such as Nigeria and Angola.
India's crude sourcing decisions were driven primarily by commercial considerations and adequate supply availability, a Petroleum Ministry official said.
There was no shortage of crude supplies and enough volumes had been tied up through long-term arrangements.
India, the world's third-largest importer of oil, sharply increased purchases of Russian oil to take advantage of lower prices, helping domestic refiners manage elevated global energy costs.
In recent months, US sanctioned certain Russian entities, including its largest crude oil suppliers -- Rosneft and Lukoil as well as ships and financial channels. This led to a brief moderation in purchases last year but the waivers led to Indian refiners stepping up purchases again.
Russian oil imports into India are expected to average close to near record levels at 1.9 million barrels per day in May, according to data from Kpler.
The purchase of Russian crude is taking place at a time when the prices of benchmark Brent crude have shot past $100 per barrel.
India's purchase of Russian oil has helped to cool down runaway prices in the global market by easing the pressure on overall demand for oil.
— IANS
Reader Comments
The 11 stuck vessels are a real concern. Hope our sailors are safe and we can bring them home soon. Meanwhile, buying Russian oil at discounted rates has kept our fuel prices from skyrocketing further. Every rupee saved helps the common citizen.
Good strategy but we need to be careful about sanctions. US pressure is real and waivers won't last forever. We should invest more in renewable energy and domestic production. Relying on imports, even from multiple sources, is still a vulnerability.
Finally some pragmatism! While the West cries about Russia, India is doing what's best for its people. Russian oil at discounted rates helps our refineries and keeps petrol prices stable. Let's hope this diversification continues and we reduce dependence on any single region.
A balanced approach is needed. While diversifying imports is welcome, we must not become too dependent on Russian oil either. The government should also focus on increasing domestic exploration and fast-tracking renewable energy projects. Energy security requires multiple solutions.
Great to see India playing smart geopolitics! Buying Russian oil at discounted rates while maintaining our strategic autonomy. The West can lecture all they want, but our energy security and economic interests come first. The 1.9 million barrels/day figure shows this is working well.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.