Hardeep Singh Puri Says Russia Is Now Largest Supplier Of Crude Oil To India

New Delhi: Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said on Tuesday that Russia has become the largest supplier of crude oil to India, accounting for more than 35 per cent of the country’s imports.

Speaking at the FIPI Oil and Gas Awards Ceremony, the minister highlighted the dramatic shift in India’s oil sourcing over the past two years, with Russian oil imports surging from a mere 0.2 per cent in February 2022 to consistently occupying the top spot in recent months.

“For quite some time now, Russia has been the largest supplier of crude to India. The percentage would be upwards of 35 per cent, but it varies from month to month,” Mr Puri stated. He noted that the increase is influenced by global price dynamics and availability, with India balancing long-term contracts with spot market purchases.

“It was as little as 0.2 per cent in February of 2022, but then it went up. How it will stay and where it will go, I keep saying these are not decisions that the Ministry takes. Our oil marketing companies, floor tenders for particular grades of crude,” he added.

Mr Puri also emphasized the evolving nature of India’s energy partnerships, mentioning other significant suppliers such as Saudi Arabia, the UAE, Iraq, Kuwait, and the United States.

“For some countries, they have long-term agreements, for others, they are buying on the spot and then it becomes a function of price, etc. In the foreseeable future, the major suppliers, Saudi Arabia, UAE, Iraq, Kuwait, United States are big suppliers now. More and more energy is coming on the global scene,” the Union Minister said.

Further, talking about India’s progress in the energy sector, Hardeep Singh Puri stated that is evident in key achievements such as the reduction of fuel prices over a three-year reference period, making India the only country globally to achieve this.

“LPG cylinder prices in India are among the lowest worldwide, with costs as low as Rs 6/day for PMUY households and Rs 14/day for non-PMUY households. Furthermore, India is on track to increase its exploration acreage to one million square kilometres by 2030, with a 16 per cent increase expected by 2025,” he said.

The Union Minister also highlighted the government’s success in increasing ethanol blending in petrol, from 1.53 per cent in 2014 to 16 per cent in 2024, with the goal of reaching 20 per cent next year.

“This achievement places India as the second-largest economy in biofuel blending, following Brazil. The expansion of City Gas Distribution (CGD) coverage was also underscored, with 100 per cent CGD area coverage expected in 2024, compared to just 5.5 per cent in 2014,” he said.

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