India warns of doubling oil prices as trade with Russia declines

India warns of doubling oil prices as trade with Russia declines

Indian Minister of Petroleum and Natural Gas Hardeep Singh Puri said that Russian fuel supplies to India are holding back global oil prices. According to him, its cost will double if the country reduces supplies from Russia.

“If India starts buying more Middle Eastern fuel instead of Russian oil, its price will not vary at $75–76. Oil will cost $150,” Hardeep Singh Puri said at the India Energy Week conference (quoted by CNBC).

He added that India will continue to buy the cheapest and most available oil, regardless of politics. According to the minister, the world is grateful to India for purchasing Russian oil. Previously, the Indian government was criticized for the fact that the country’s trade with Russia allows Moscow to continue military operations in Ukraine.

Reuters wrotethat in 2023 India became the largest buyer of Russian oil transported by sea, which Moscow sold at a discount. However, imports fell to annual lows in December and January. Reuters interlocutors linked this to a decrease in discounts on oil from Russia, as well as the crisis in the Red Sea.

Read more about oil transportation to India in the Kommersant publication. “Russia is looking for a place for Sokol”.

Petr Buzlaev

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