India's Strategic Oil Purchases From Russia Helped Stabilize Global Prices, Says Minister Puri
Abu Dhabi, UAE - Union Petroleum and Natural Gas Minister Hardeep Singh Puri highlighted the significant role India played in mitigating a potential spike in global oil prices by continuing to purchase Russian oil during times of economic uncertainty. Speaking at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), Puri stated that without India's intervention, oil prices could have escalated to $200 per barrel.
Puri explained, "If the Indian government hadn’t bought Russian oil, the global oil price would have gone up to $200 for everyone." He further elaborated that India's decision was pivotal in preventing a drastic increase in international oil prices, especially following the geopolitical shifts that made Russian oil available in large quantities post-February 22.
Addressing the recent 10% reduction in Russian oil imports by India in October, Puri clarified that this was not a strategic withdrawal but a response to competitive pricing dynamics in the global market. "There are other suppliers offering competitive rates, and the OPEC position doesn’t involve price negotiations. Healthy competition is underway, and if one source is unavailable, there are always alternatives," he noted.
The minister emphasized that India's approach was not about favoring one supplier over another but about securing the best possible deals for its energy needs. "We will continue to buy energy from whoever offers the best rates to our oil companies," Puri affirmed, adding that this strategy also aligns with India's commitment to ensuring steady, affordable, and sustainable energy for its citizens.
Puri also countered criticisms regarding India's oil procurement strategy by pointing out that several European and Asian countries have similarly engaged with Russian energy supplies. "Many European and Asian countries have also bought significant amounts of crude oil, diesel, LNG, and rare earth minerals from Russia," he said, underscoring that India's actions were not only in its national interest but also contributed positively to the global energy market stability.
In his social media posts, Puri reiterated that India's decision to buy Russian oil, which was never under formal sanctions but only subject to a price cap, was a favor to the world by keeping oil prices in check. "India did the entire world a favor by buying Russian oil because if we had not done so, the global oil prices would have skyrocketed to USD 200/barrel," he posted on X.
The minister concluded by highlighting India's achievements in managing fuel prices over the past three years, contrasting it with the rising energy costs globally, thereby showcasing India's effective energy policy amidst international economic turbulence.