Russian Oil is being offered by Russia with as much as $35 per barrel discounts. If India buys crude supply from Russia, it may help contain the rising Indian oil price rises. In an interaction with British Foreign Secretary Elizabeth Truss, External Affairs Minister S Jaishankar on Thursday said, “When oil prices go up, it’s natural for countries to look for good deals for their people.”
The discount offering comes at a time when global crude oil prices are hit by supply chain disruptions due to the Covid-19 pandemic and later Russia’s invasion in Ukraine.
Russian Oil Discounted Price is Tempting for India
India imports over 80 per cent of its crude oil requirements. The country imported 193.5 million tonnes of crude oil in the current financial year till February, at a cost of $105.8 billion.
The country’s total consumption of petroleum products stood at 183.3 million tonnes during the period. The crude oil in the country mainly comes from the Middle East and the US.
From Russia, in the whole year 2021, the country bought just 12 million barrels of the oil, which is only 2 per cent of its total imports. India’s own domestic production is more than that.
Elizabeth added that “I’m pretty sure if we wait 2-3 months and look at the big buyers of Russian gas and oil, I suspect the list won’t be any different than what it used to be & we won’t be in the top-10.”
Offering discounts, Russia also wants India to buy 15 million barrels of oil as an initial deal. According to data compiled by commodities research group Kpler, India did not import any oil from Russia in January and February but March and April contracts have already touched six million barrels for the Urals grade oil.