NDTV | No Pressure, Says Indian Minister Ahead Of Russian Oil Price Cap Deadline

Nov 17,2022

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri has said that the incumbent government feels no pressure on an impending price cap on Russian crude oil proposed by the G-7, the group of seven advanced countries.

"We will see it when it happens. The Modi government feels no pressure. I have no fear or anxiety. The market will deal with the logistics issue if it arises. Whatever happens, will be dealt with," Hardeep Singh Puri responded to reporters on being asked about the price cap mechanism on Russian crude oil proposed by G7 nations starting December 5.

Hardeep Singh Puri made the remarks at a press conference on the sidelines of World LPG Week 2022 held in Greater Noida on Wednesday.

On September 2, the G7 countries agreed to future implementation of a price cap on oil exports from Russia to limit its largest source of income.

According to the G7 decision, transportation services such as shipping and insurance will be allowed for oil exports from Russia only if oil is purchased below or at the price cap. As per reports, G7 nations are still fine-tuning the details of the price cap ahead of the December 5 timeline.

Hardeep Singh Puri had last month in Washington after his bilateral meeting with US energy secretary Jennifer Granholm stated that 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.

In an interview with CNN, the minister had also reiterated that India is under no moral conflict to stop buying oil from Russia. Hardeep Singh Puri also defended India's purchases stating that India only bought 0.2 per cent, not 2 per cent of Russian oil and it buys in a quarter what Europe buys in one afternoon.

The war in Ukraine which started in February has had a significant impact on global food security and has led to a sudden increase in crude prices following western sanctions on Moscow. Earlier, India said its oil imports will be determined by its national interest and its large consumer base.

Last week External Affairs Minister S Jaishankar during a joint press conference along with Russian Foreign Minister Sergey Lavrov in Moscow responded to a question about India's increasing oil import amid western outcry

"There is stress on the energy market created by a combination of factors. But as the world's third-largest consumer... a consumer where the level of income is not very high, it is our obligation to ensure that the Indian consumer has the best possible access to the most advantageous terms on the international market," S Jaishankar said.

"...in that respect, the India-Russia relationship has worked to my advantage. If it works to my advantage, I would like to keep that going," he added.

Meanwhile at the Greater Noida event on Wednesday, Union Minister Hardeep Singh Puri noted the relevance of the theme of World LPG Week 2022 and said that the theme 'Humanizing Energy'- is apt as energy has a direct impact on human well-being and there is an urgent need to produce and use energy in a sustainable way' while ensuring affordability and availability to everyone.

World LPG Week 2022 is being held from November 14-18 at India Expo Mart (IEML), Greater Noida, where the world LPG industry would meet under the theme, 'Humanising Energy'. Senior officials from the Ministry of Petroleum & Natural Gas (MoPNG) and Indian Oil Corporation Ltd.(IOCL) and representatives from the Oil and Gas Industry attended the event.

Talking about the scenario prior to the launch of PMUY (Pradhan Mantri Ujjwala Yojana), Hardeep Singh Puri said that the availability of clean cooking fuel in the country was a major challenge for rural households in India for many years. Though LPG was the major source of cooking energy in urban India, a large proportion of households still had to depend on biomass such as firewood, dung, crop residue and coal/charcoal for their cooking needs.

Benefitting more than 9.55 crore households in India, the PMUY scheme has become a global role model for India's success story in ensuring energy access, and energy justice while achieving climate change and women empowerment goals, the minister said at the event.