India’s purchase of Russian oil stabilised global prices, says Hardeep Singh Puri

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India's choice to purchase oil from Russia during global uncertainty has helped prevent a steep increase in global oil prices, according to Union Petroleum and Natural Gas Minister Hardeep Singh Puri. In a recent interview with CNN, Puri explained India's decision to maintain oil imports from Russia, which he believes has benefited the global economy by stabilising oil prices.

Speaking to CNN's Becky Anderson during the ADIPEC event in Abu Dhabi, Puri stated that, without India's oil imports from Russia, the price of global crude could have surged to $200 a barrel, which would have affected all consumers worldwide. According to ANI, Puri remarked, "If we had not bought Russian oil, the price would have gone up to $200 per barrel for everyone."

Puri further elaborated on India's strategy, sharing that oil will continue to be an essential part of the global energy mix for years to come. He noted that despite his previous hope for oil price reductions, he now has even greater confidence in future stability. "By 2026, as more energy sources become available, I think the likelihood of prices remaining stable or even coming down is higher," Puri added, as per ANI.

Addressing questions about India's October reduction in Russian oil imports by around 10%, Hardeep Singh Puri clarified this was due to competitive rates available from other suppliers. "There's healthy competition. If we don't get oil from one supplier, we find it from another," he said, emphasising the role of market dynamics in India's oil decisions.

When asked if this reduction was part of a strategic shift, Puri highlighted that the decisions are market-based, influenced by supply availability. He shared a hypothetical scenario in which India's shift to other suppliers might have led to a dramatic rise in prices. "If India had suddenly shifted its imports to Gulf suppliers, oil prices would have risen to $200 a barrel," Puri said. "We did everyone a favour."

Puri also touched on future energy trends, predicting that advances like green hydrogen and cleaner energy sources will reshape global demand for oil within five years.

In a post on his X account, Puri reiterated his stance, underscoring that India's purchase of Russian oil had a stabilising effect. According to ANI, Puri wrote, "India did the entire world a favour by buying Russian oil; if we had not, global prices would have skyrocketed to $200 per barrel." He clarified that Russian oil was never sanctioned, though there was a price cap that Indian companies adhered to.

The Union Minister also addressed critics, pointing out that while some commentators have called for restrictions on India's energy purchases, many European and Asian countries have conducted substantial trade with Russia, buying crude oil, LNG, and rare earth minerals worth billions. He affirmed, "We will continue to buy energy from whoever offers the best rates to our oil companies," according to ANI.

Puri also highlighted the need for affordable energy in India, noting that fuel prices have dropped in India over the last three years despite global price increases. In his post, he stated, "Ensuring steady availability, affordability, and sustainability of energy for our seven crore citizens visiting petrol pumps every day is our top priority."

India remains the world's third-largest oil consumer, as per the International Energy Agency's 2024 estimates. According to ANI, Puri's statements underline India's commitment to prioritising economic stability and energy security while navigating the evolving global energy landscape.

(With inputs from ANI)