India's Strategic Purchase of Russian Oil Stabilized Global Prices, Says Petroleum Minister
ABU DHABI, UAE - Union Petroleum and Natural Gas Minister Hardeep Singh Puri declared at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) that India's decision to purchase Russian oil amidst global economic turbulence played a pivotal role in preventing a dramatic increase in international oil prices.
Addressing the conference on Thursday, Minister Puri highlighted, "If the Indian government hadn’t bought Russian oil, the global oil price would have escalated to $200 per barrel for everyone." He emphasized that this strategic move not only benefited India but also contributed significantly to global economic stability.
Puri also forecasted a more stable market by 2026, suggesting, "As a student of the situation, I believe the likelihood of prices remaining stable or decreasing is high, given the anticipated increase in energy availability."
The minister addressed the recent 10% reduction in Russian oil imports by India in October, attributing it to the competitive dynamics in the global oil 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 becomes unavailable, there are always alternatives," he explained.
Responding to queries about whether this reduction was a strategic move, Puri clarified, "When we faced February 22, there were 13 million barrels of Russian oil suddenly available. If India had stopped purchasing and shifted its demand to Gulf suppliers, global oil prices would have surged to $200 per barrel. I think we did everybody a favor."
In a post on X (formerly Twitter), Puri reiterated that India's oil purchases from Russia were beneficial to the global market, pointing out that Russian oil was not under formal sanctions but only subject to a price cap, which Indian companies adhered to. "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 stated.
Addressing criticisms about India's oil sourcing, Puri noted, "Some ill-informed commentators have talked about restricting India, but many European and Asian countries have also bought significant amounts of crude oil, diesel, LNG, and rare earth minerals from Russia. We will continue to buy energy from whoever offers the best rates to our oil companies."
Puri emphasized India's commitment to ensuring steady availability, affordability, and sustainability of energy for its citizens, stating, "We need to ensure these priorities for our 70 crore citizens who visit a petrol pump every day. That’s our top priority." He also highlighted India’s achievement in reducing fuel prices over the past three years, contrasting with rising energy costs in other nations.
(ANI)