Crude Oil Crisis: There is a danger bell for India's oil refineries. There may be a crisis on the supply of crude oil from January. The crisis is very deep. Because this will not meet the fuel needs of the country. Due to this, the pace of the economy may slow down. The management of India's three big oil companies Indian Oil, Hindustan Petroleum and Bharat Petroleum are worried about the coming crisis and are engaged in finding a solution to it.

According to a Business Standard report, a source said that this crisis is due to an initiative of the Russian government rather than the shadow of the Ukraine war. Till now, Indian oil companies have been lifting crude oil through the spot market. The Russian government is insisting on supplying crude oil directly to oil producing companies through long-term contracts instead of the spot market.

The situation before the Ukraine war

A senior official associated with oil companies told Business Standard that we are not in a position to get even six million barrels of crude oil every day. So far we have been able to ensure the import of only one million barrels of crude oil per day from Russia for the country's refineries. Which is very close to the situation of no crude oil import from Russia before the Ukraine war. 

Alternative sources will be quite expensive 

Officials said that the option of crude oil supply from Middle East and Africa is available for government oil companies. But it will prove to be much more expensive than Russia and its margin will also be very low. Moscow is pressurizing India to get Indian government oil companies to enter into a long term contract for purchasing crude oil from Russian government oil companies. The Indian government also wants that the government and private oil companies here should join together in a long term contract on beneficial terms and conditions. But it has not been implemented yet.