US gives India 30-day waiver to buy Russian oil:Petrol diesel prices unlikely to increase in the country

The crisis of rising petrol-diesel prices in India has ended for now, as India has received permission to purchase crude oil from Russia. The US Treasury Department has given Indian refineries a 30-day special license. This license will remain valid until April 3. US Treasury Secretary Scott Besent announced on March 6 that this temporary measure was taken under President Trump’s energy agenda. He said that India is an important partner of America and this exemption has been given to maintain stable oil supply in the global market. Oil purchases from America also expected to increase Besant wrote on social media platform X, “Iran is trying to hold the global energy market hostage. We are giving India this 30-day exemption to reduce this pressure. We are fully confident that after this India will accelerate the purchase of American oil.” America believes that this ‘stop-gap’ measure will not allow oil shortage in the global market. Can only purchase oil from ships loaded until March 5 Crude oil crosses $83 due to Israel-Iran war The situation has become very serious due to the war in the Middle East. Iran has blocked the ‘Strait of Hormuz’, through which 20% of the world’s oil supply passes. Attacks on oil fields: In the past few days, there have been attacks on major centers like Saudi Aramco’s ‘Ras Tanura’ refinery and Iraq’s ‘Rumaila’ oil field. Price surge: Due to US and Israel’s military action against Iran, Brent crude prices in the global market reached $84 per barrel this morning. Preparation to buy Russian oil tankers According to Bloomberg’s report, India is considering buying Russian oil cargo that is currently near Indian waters or in Asian waters. According to data, approximately 9.5 million barrels of Russian crude oil are currently in waiting mode in tankers around Asian countries. In case of supply shortage, India can immediately receive these tankers, which will reduce both transportation time and cost. India is the world’s third-largest crude oil consumer. India imports about 88% of its total crude oil requirements from foreign countries. India has been buying Russian oil for energy needs Last November, due to the war with Ukraine, the Trump administration imposed strict sanctions on Russian oil companies Lukoil and Rosneft. After this, India’s Russian oil imports fell to 1.1 million barrels per day in January, which was the lowest since November 2022. However, in February this share again increased to 30%. India has continued to buy Russian oil at discounted rates to meet its energy needs. Why is Russian oil important for India? Affordable Option: Russia offers oil to India at a discount from benchmark prices. Supply Security: When there is tension in the Middle East, supply through the Strait of Hormuz stops, Russia is a secure alternative. Impact on Economy: Getting cheaper oil keeps petrol-diesel prices stable in the country and inflation remains under control. No Expected Increase in Petrol-Diesel Prices in India Despite the surge in crude oil prices in the global market, there is currently no likelihood of an increase in petrol and diesel prices in India. The government and oil companies are keeping a close watch on the situation, and this American concession will help manage the supply chain.