India will continue to buy Russian crude oil:US gives 30-day oil relief as government dismisses sanctions impact

Even after the expiry of the sanctions waiver from the United States, India will continue to buy crude oil from Russia. Sujata Sharma, Joint Secretary of the Ministry of Petroleum, stated that American sanctions will not affect our import plans. Meanwhile, in view of the global supply crisis, the US Treasury Department has issued a 30-day temporary license to buy oil from Russian oil tankers stranded at sea. US Treasury Secretary Scott Bassant shared this information on the social media platform X. According to Bassant, this will provide additional flexibility. This general license will help stabilize the crude oil market and ensure access to oil for energy-sensitive countries. Record 2.3 million barrels of crude arrived daily in May Sujata Sharma said that India’s stand on this matter has always been clear. India was buying oil from Russia even before receiving the US waiver, bought it during the waiver, and will continue to do so in the future.
The government has already arranged for a sufficient supply of crude oil according to the country’s needs, so there is no shortage of crude oil in the country. Figures show that India imported a record 2.3 million barrels per day of crude oil from Russia in May. America had allowed the purchase of Russian oil until May 16 To prevent oil prices from rising globally and to keep the supply of petrol and diesel normal, America had granted a special exemption in March to countries like India to buy oil from Russia. Initially, this exemption was extended until May 16. However, ever since the war between Russia and Ukraine began, America has been continuously pressuring India to reduce its purchase of crude oil from Russia at low prices. Supply is essential to curb inflation in the domestic market According to a Bloomberg report, Indian officials had made it clear to the US administration that maintaining the country’s oil supply amidst fluctuations in the global market was the government’s top priority. Officials had also warned that if there was any disruption in oil supply, it would directly affect Indian consumers. This could lead to shortages and increased inflation for essential commodities like domestic cooking gas (LPG) in the country. However, there was no official reaction from India’s Ministry of Petroleum, Ministry of External Affairs, and the US Treasury Department on the entire matter. Oil imports from Russia reached record levels in May Before the American waiver deadline expired, Indian refinery companies significantly accelerated their purchase of crude oil from Russia. According to data from intelligence agency Kpler, India’s Russian oil imports have reached a record level of 2.3 million barrels per day so far in May, which is the highest figure ever. Analysts estimate that the average import for the entire month of May will also be around 1.9 million barrels per day. India has been buying Russian Oil for its energy needs Last November, due to the war with Ukraine, the Trump administration imposed strict sanctions on Russian oil companies Lukoil and Rosneft. Subsequently, in January, India’s Russian oil imports fell to 1.1 million barrels per day, which was the lowest since November 2022. However, in February, this share again increased to 30%. India has continuously been buying Russian oil at discounted rates to meet its energy needs.