New Delhi, July 10 — India’s continued imports of Russian crude oil played a crucial role in stabilizing global energy markets and averting a dramatic surge in oil prices, Petroleum and Natural Gas Minister Hardeep Puri asserted on Wednesday, dismissing criticism over India’s energy policies amid the Russia-Ukraine conflict.
Speaking during his visit to Vienna, Puri explained that Russia’s daily crude output of over nine million barrels is vital to global supply. Removing such volumes from the market would have forced an impossible 10 per cent cut in worldwide oil consumption, sending prices soaring above USD 120-130 per barrel.
“Imagine the chaos if this oil, amounting to about 10 per cent of the global oil supply of around 97 million barrels, vanished from the market,” Puri said, emphasizing that India’s purchases were instrumental in keeping prices from spiraling out of control.
After the Russia-Ukraine war broke out, the West imposed restrictions on Moscow, but Russian oil itself was never under global sanctions, instead facing a price cap.
“Sensible decision-makers worldwide understood the realities of the global oil supply chain and recognized how India, by buying discounted oil under the price cap, was helping stabilize global markets,” Puri noted, countering critics who have questioned India’s imports from Russia.
Under Prime Minister Narendra Modi’s leadership, India has contributed positively to global energy price stability while addressing the “trilemma” of energy availability, affordability, and sustainability, Puri added.
India, he said, continues to ensure clean cooking gas reaches 330 million households at the world’s lowest prices, citing the PM Ujjwala Scheme, under which over 103 million families access LPG at just $0.40 per kg, or around 7-8 cents per day.
Meanwhile, India is stepping up efforts to boost traditional energy production, including new exploration in the Andaman region, as the country now the world’s third-largest energy consumer faces growing demand estimated at 5.4 million barrels of oil per day.
Currently, India imports about 80 per cent of its oil and 50 per cent of its natural gas needs, prompting diversification of suppliers to meet domestic requirements.
During the 9th OPEC International Seminar in Vienna, Puri held bilateral meetings to deepen energy ties, including discussions with Kuwait’s Oil Minister Tareq Sulaiman Al-Roumi, Nigeria’s Minister of State for Petroleum Resources Sen. Heineken Lokpobiri, Shell CEO Wael Sawan, OPEC Secretary General Haitham Al Ghais, bp CEO Murray Auchincloss, and Vitol Group CEO Russell Hardy.
Talks covered areas ranging from increasing oil and gas supplies to collaborating on exploration and production, advanced technologies, and green energy transitions.
Highlighting India’s ambitious exploration plans, Puri said nearly 2.5 lakh square kilometers of new offshore and onshore areas are up for bidding under one of the world’s largest exploration rounds.
India aims to raise natural gas’s share in its energy mix from 6 per cent to 15 per cent, presenting significant opportunities for global companies with advanced technologies and expertise, Puri concluded.
