New Delhi: India might not be the club’s most enthusiastic member when it comes to capping the price of Russian crude oil, as per a report by Livemint.
Recently, the US-led G7’s finance ministers suggested that oil-related service companies be restricted to dealing in Russian seaborne oil and petroleum products at a set price.
India, the largest oil importer in the world at the moment, is hesitant to support the campaign against Russia because it still receives oil shipments from that country at a discount.
The initiative to regulate Russian oil prices comes amid efforts to lessen Russia’s income in order to reverse its gains in the Ukraine War with little impact on the world energy crisis.
Russia has previously advised nations not to join the G7 effort. Supplies will be cut off to all participating nations.
According to the Livemint report, India would likely stay put and keep importing oil from Russia in order to balance its interests amidst the current global unrest.
Russia became India’s third-largest oil supplier in FY2023. Prior to the crisis with Ukraine, Russia was never India’s main oil supplier.
India’s ability to meet its energy needs is mostly dependent on imports. Up to 85% of India’s oil demands and 55% of its natural gas requirements are imported.
Currently, India purchases Russian oil on a delivered-at-place (DAP) basis at an average discount of $15 to $20 per barrel.
Government statistics show that up until August, India bought crude oil from Russia worth $11.41 billion.
The Organization of Petroleum Exporting Countries (OPEC) has lowered its output by two million barrels per day at the same time as the price cap. This occurs at a time when India is already struggling with historically high domestic fuel prices.