Hindustan Times | No one told India to not buy oil from Russia: Hardeep Singh Puri; 'What Europe buys in one afternoon...'

Oct 08,2022

Union petroleum and natural gas minister Hardeep Sing Puri said India has not been told by anyone to stop buying oil from Russia. The Indian government has a moral duty to provide energy to its citizens and it will continue to buy oil from wherever it has to as this kind of a discussion can not be taken to the consuming popultion, the union minister said in Washington after his bilateral meeting with US energy secretary Jennifer Granholm. “If you are clear about your policy, which means you believe in energy security and energy affordability, you will buy from wherever you have to purchase energy from sources,” the minister said.

"India will buy oil from wherever it has to for the simple reason that this kind of a discussion cannot be taken to the consuming population of India," the minister said reiterating New Delhi's stand on buying oil from Russia amid the ongoing Ukraine war.

"Have I been told by anyone to stop buying Russian oil? The answer is a categorical No," the minister said.

"There has been a fair amount of misconception on energy buys from Russia. Typically what Europe buys in one afternoon is what we buy in a quarter. We ended the financial year with a total amount of Russian oil import of 0.2%. Yes when 24th February took place, and in the following months imports from Russia significantly arose as a result of the dislocation in the market," Hardeep Singh Puri said.

"But subsequently, other suppliers stepped in. And I think, in the following months, another middle-eastern supplier was in the No 2 situation. And Saudis were No 1 always and one quarter I think Russia moved up," the minister said.

"Very often people don't understand how the oil trade takes place. If I have to buy, let's say, crude from a very distant place, where the price of icebreaker has to go in...it does not work out. For me, it's much easier to buy from a proximate point. Let's say in the Gulf. The oil markets will play and we have to play the market card to choose," the minister said.

External affairs minister S Jaishankar, on several platforms, explained what went behind India's decision to continue buying Russian oil. Recently, Jaishankar said PM Modi's advice on the issue was to do what is best for the nation. "Due to the Russia-Ukraine conflict, petrol prices doubled. We had pressure from where to buy the oil but PM Modi and the government were of the view that we have to do what is the best for our nation," Jaishankar said.

Puri also commented on the decision of OPEC+ (Organisation of Petroleum Exporting Countries) to cut oil production by two million barrels a day and said India will be able to navigate the situation. “At the end of the day, the amount of energy that is released by producers and suppliers matches the demand that there is in the market and there is an equilibrium, you will have market forces playing out. How much energy you release will have an impact on price levels.”