India's oil imports from Russia, minuscule compared to consumption, says Petroleum Ministry

The Ministry of Petroleum & Natural Gas on Wednesday issued a statement over a report on the purchase of crude oil from Russia.

The Ministry said Our top 10 import destinations are mostly from West Asia. Pic: Reuters

The Ministry of Petroleum & Natural Gas on Wednesday issued a statement over a report on the purchase of crude oil from Russia. The article makes conjectures and tries to sensationalize the routine purchase of crude oil by Indian Oil Companies from Russia based on concocted “source-based” stories, a government release said rejecting the contents of the article.

"Such blatant misuse of the freedom of the Press could be disregarded but cannot, in this case, because this is a part of a pre-meditated attempt to further destabilize an already fragile global oil market," the Ministry said in a statement.

"The comparison of selective data in the article in order to produce a false narrative is clearly a part of an orchestrated campaign. The article also contains several inherent contradictions," the Ministry said.

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With daily consumption of roughly 5 million barrels and a refining capacity of 250 MMTPA, India's energy needs are immense. For energy security and to fulfill its objective of providing energy justice to each of its citizens, Indian Energy companies buy from all major oil producers in the World. India has the unique distinction of serving 60 million visitors every day at its petrol pumps on average. Despite the difficulties, it is critical for the government to ensure that our population has access to affordable energy.

The Ministry further said "Our top 10 import destinations are mostly from West Asia. In the recent past, USA has become a major crude oil source for India, supplying almost $13 bn worth of energy imports, with almost 7.3% of market share of crude oil imports."

India has been constrained to pay ever-increasing prices charged by certain oil suppliers, which is leading India to diversify its sources of procurement. Meanwhile, energy demand in India remains inelastic. At the current price levels, many countries in the immediate neighborhood are facing severe fuel shortages and chaos due to high fuel inflation.

"Indian Energy companies have been sourcing energy supplies from Russia, on a sustained basis, over past several years. Yearly figures may have varied due to variety of reasons, including operational necessities. If suddenly, now, as a huge importer of crude oil, India pulls back on its diversified sources, concentrating on the remaining, in an already constrained market, it will lead to further volatility and instability, jacking up international prices," according to the statement.

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