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News Topical, Digital Desk : India is facing increasing pressure from the US to purchase crude oil from Russia. However, amid this pressure, Indian government and private companies are adopting different strategies for purchasing oil from Russia. According to a report in the Economic Times, government companies have reduced the share of Russian oil in their oil purchases, while private companies have increased it.
What is the information on imports?
Citing Kpler data, the report states that Russian oil imports by state-owned refineries averaged 60.5 million barrels per day in September, a 32% drop from the April-August average. This import decreased by 22% compared to August and fell 45% below the June level. On the other hand, private refineries purchased an average of 97.9 million barrels per day of Russian oil in September, a 4% increase from the April-August average. While imports remained roughly stable compared to June, they increased by 8% compared to August. According to the report, only one out of every five barrels imported by state-owned companies in September was of Russian oil, while two out of every three barrels imported by private refineries came from Russia. Due to the decrease in purchases by state-owned companies, total Russian oil imports fell 6% from August and 13% from the April-August average.
Trump imposes additional tariffs The Trump administration imposed a hefty 50% tariff on India, effective August 27th, which included an additional 25% penalty on Russian oil imports. Last month, US Congressman Brian Fitzpatrick claimed that Indian refineries were planning to reduce Russian oil imports due to US pressure. During his visit to India, he held strategic discussions with External Affairs Minister S. Jaishankar and National Security Advisors and stated that these discussions provided initial indications that Indian refineries may reduce their purchases of Russian oil. Although Finance Minister Nirmala Sitharaman stated that India would continue to purchase oil from Russia, state-owned companies appear to prioritize security over profits. According to reports, fewer discounts and plans to diversify energy sources are also contributing to the decline in Russian oil imports.
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