India is about to learn from an elevated low cost on Russian crude, which has risen to $3–4 per barrel–up from $2.5, and simply $1 in July, in line with Zee Enterprise analysis.
Crude for September–October is predicted to be even cheaper, providing important value benefits to Indian refiners.
The transfer comes as India strengthens its place because the third-largest oil purchaser globally, with imports from Russia surging from 1 per cent to 40 per cent in simply three years. Presently, India imports extra oil from Russia than from Iraq, Iran, UAE, or the US, with FY24-25 imports averaging 5.4 million barrels per day.
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Additionally Learn: Trump’s adviser labels Russia-Ukraine battle ‘Modi’s conflict’, says street to peace runs by way of New Delhi
ONGC welcomes cheaper oil
ONGC has indicated that if costs stay low, imports will proceed with out restrictions. Chairman and CEO Arun Kumar Singh stated that any change in coverage would rely on authorities directives, signaling a cautious however open method.
Cheaper Russian oil advantages public sector refiners by providing greater refining margins, a secure provide, and higher pricing energy over non-public gamers, whereas additionally mitigating dangers from Center East provide disruptions.
Trump’s warmth on India over Russian oil
The Trump administration final week doubled tariffs on Indian exports to 50 per cent, focusing on India for its Russian oil imports amid the Ukraine conflict. The transfer got here after years of criticism, regardless of Washington beforehand encouraging such purchases on the conflict’s outset in 2022.
White Home commerce adviser Peter Navarro even known as the Russia-Ukraine battle “Modi’s conflict,” accusing India of profiteering by refining and re-exporting Russian crude, calling it the Kremlin’s “laundromat.”
Additionally Learn: Vitality of 1.4 billion not up for commerce: India stands agency on Russian oil imports regardless of Trump’s tariff shock
India pushes again, strengthens ties with Russia, China
India rejected these fees, with Exterior Affairs Minister S Jaishankar noting that its oil commerce with Russia stabilizes international costs and is a nationwide and worldwide necessity. Union Oil Minister Hardeep Singh Puri affirmed that every one transactions with Moscow are clear and bonafide.
In a present of strategic alignment, Prime Minister Narendra Modi highlighted India’s “particular” relationship with Russia and endorsed Chinese language President Xi Jinping’s name to rebuild ties as companions moderately than rivals in the course of the Shanghai Cooperation Organisation summit.