India’s Purchase of Russian Oil Prevented Global Price Surge: Hardeep Puri

GG News Bureau
Abu Dhabi, 8th Nov. India’s decision to continue buying oil from Russia amid global uncertainties helped prevent a potential surge in global oil prices, said Union Petroleum and Natural Gas Minister Hardeep Singh Puri.

In a recent interview with CNN’s Becky Anderson at the ADIPEC energy conference in Abu Dhabi, Puri explained that had India not made this move, global oil prices would have escalated to $200 per barrel.

Puri stated that oil would remain a crucial part of the global energy supply in the years to come. “Earlier, I said I hope there will be a reduction in oil prices. Today, I’m more confident that there will be,” he told CNN. Puri expressed optimism that by 2026, with more energy available on the market, oil prices could stabilize and even decrease.

When asked about India’s 10% reduction in Russian oil imports in October, Puri clarified that it was due to competitive oil rates in the market. “There are other suppliers willing to offer competitive rates,” he explained. “If you don’t get it from one, you get it from someone else.” He emphasized that the reduction wasn’t a strategic move but rather a market-driven decision.

Puri elaborated on the crucial role India played in stabilizing the oil market during the global disruption. He noted that in February 2022, with 13 million barrels of Russian oil entering the market, if India had shifted its 5 million barrels to Gulf suppliers, oil prices could have surged drastically.

In a post on his X account, Puri further highlighted that India’s purchase of Russian oil benefited the entire world by helping to keep global oil prices from spiking. He pointed out that Russian oil was not under sanctions but was capped at a price, which India adhered to.

Puri also responded to critics who sought to impose restrictions on India’s oil purchases, reminding them that many European and Asian nations had also engaged in significant energy purchases from Russia, contributing billions of dollars to Russia’s economy.

He concluded by reaffirming India’s commitment to ensuring affordable and sustainable energy for its citizens. “India is the only major consumer where fuel prices have significantly decreased over the past three years despite global price hikes elsewhere,” Puri noted.

India, currently the third-largest oil consumer globally, has been actively navigating the complexities of the global energy market to maintain energy security for its population of 1.4 billion people.