The United States recently stated India may purchase oil from Russia. However Congress leaders alongside opposition parties criticised the statement. Consequently critics questioned the Modi government response. Meanwhile Indian authorities issued clarification regarding procurement strategy. Therefore officials explained India purchases petroleum wherever prices remain lowest. However India never stopped buying Russian crude oil. Instead authorities reduced quantities compared earlier periods. Nevertheless Russian supplies earlier remained cheaper than alternatives.
Price Advantage Of Russian Oil Declines
However present conditions create new challenges for India. Consequently Russian oil no longer delivers earlier financial advantage. Initially India purchased Russian crude because prices remained lower. However current conditions changed pricing structure significantly. According Reuters report Russian Urals crude currently costs four to five dollars higher per barrel compared Brent. Furthermore one barrel equals 158.987 litres of crude oil.
Shipments Arrive During March And Early April
Meanwhile shipments will reach Indian ports during March and early April. Additionally new cargo prices contrast sharply previous discount offers. Earlier deals provided discounts around thirteen dollars per barrel. For example Hindustan Petroleum Corporation Limited purchased two cargoes before war began. Specifically purchase occurred February 28 at thirteen dollar discount.
Indian Refineries Continue Massive Purchases
Meanwhile global tensions influence oil supply chains. Specifically conflict involving United States Israel alongside Iran reduced availability across markets. Consequently Indian refineries continue purchasing millions barrels Russian crude. Government refiners include Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited, and Mangalore Refinery and Petrochemicals Limited. Moreover these companies negotiate traders for faster cargo deliveries. Furthermore state refiners purchased nearly twenty million barrels Russian crude from traders.
Traders Highlight Supply Molecule Challenge
Meanwhile trader selling Russian crude to India provided important explanation. According trader Indian refiners returned market again. However molecules availability currently creates major concern rather than price alone. Molecules availability refers hydrocarbon structures present within crude oil sources. Additionally compounds include sulphur nitrogen oxygen alongside metals. Therefore composition determines refining difficulty toward petrol diesel products. Consequently different molecular structures influence processing efficiency.
Russia Signals Readiness To Support India
Meanwhile Russian embassy official earlier delivered statement regarding energy supply. Official explained Russia stands ready supporting India energy requirements during disruptions. Furthermore report mentioned Indian refiners unloading Russian crude from vessels near coastline. Consequently refineries compensated losses from Middle East supplies.
Background Of India Russia Oil Trade
Earlier Russia launched Ukraine invasion during 2022. Consequently India emerged largest buyer Russian crude oil. However January 2025 brought policy shift following alleged American pressure. Therefore India reduced purchases from Russia. Meanwhile interim India United States arrangement reduced tariff levels. Initially tariff reached fifty percent. However later agreement lowered tariff to eighteen percent.
