Economy

India to diversify oil imports as OPEC cartel aims to hike prices

As OPEC (Organization of the Petroleum Exporting Countries) Plus members gear up to cut production from November, India is aggressively looking to diversify its oil procurement sources. The OPEC Plus has decided to cut production by 2 million barrels a day.

Petroleum Minister Hardeep Singh Puri has, however, assured the country that there will be no fuel shortage. India has also continued to purchase oil from Russia despite facing intense pressure from the West to scrap economic relations with Moscow after its invasion of Ukraine.

An insider also said that with inflationary pressures rising, India will be guided by its own interest and strategic autonomy to ensure that prices are contained in the domestic markets. While imports from Russia have increased, India may look to expand inbound shipment further with pricing favours.

India imports about 85 per cent of its total oil requirements and an increase in global price, therefore, has a direct impact over its import bills.

As per the International Energy Agency (IEA) estimates, India will contribute a quarter of the growth in global energy consumption in the coming two decades. Oil and gas major BP estimated that India’s energy demand will double, while natural gas demand is expected to grow five-fold by 2050.

The third largest consumer of oil, India’s net import bill for oil and gas was $14.9 billion in July 2022 compared to $8.0 billion in July 2021. India is importing Russian oil at a price significantly cheaper than Saudi Arabia.

Also read: India aims to step up domestic crude oil output to cut imports

IN Bureau

Recent Posts

VINBAX 2024: Vietnam-India bilateral army exercise concludes at Kaushalya Dam

The fifth edition of the historic Indo-Vietnam Joint Field Training Exercise, VINBAX-2024, successfully concluded its…

16 hours ago

India-Russia strengthen defence ties at 22nd Working Group meeting on military technical cooperation

The 22nd meeting of the India-Russia Working Group on Military technical cooperation and defence industry…

16 hours ago

“I want to have strong representation of India at World Nuclear Exhibition 2025”: Sylvie Bermann

Sylvie Bermann, President of the World Nuclear Exhibition expressed confidence in India's nuclear supply chain…

18 hours ago

PoJK: Joint Awami Action Committee protests against government following new ordinance, many injured

Joint Awami Action Committee core member Shaukat Nawaz Mir has condemned the attack of police…

18 hours ago

PM Modi meets 31 world leaders, heads of organisations during his 3-nation foreign visit

Prime Minister Narendra Modi participated in 31 Bilateral Meetings and informal interactions with global leaders…

20 hours ago

India- Australia conduct 11th Indian Air Force-Royal Australian Air Force Air Staff Talks

India and Australia conducted the 11th edition of the Indian Air Force and Royal Australian…

20 hours ago