Choke on the spot! Crude oil imports from Russia increased 50 times, cheap crude will help in controlling the prices of petrol and diesel

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New Delhi. After the war with Ukraine, Russia, facing sanctions from all countries including America-Europe, offered to sell its oil to India at a cheap price, then Indian companies also grabbed this opportunity. Within just three months, the import of crude oil from Russia has increased 50 times.

A senior government official said that before the start of the war with Ukraine, Russia’s share in India’s total oil imports was only 0.2 percent. But, after the crisis in the global market, Russia offered us oil at a cheaper price, after which its share in our total imports has increased to 10 percent. It has increased 50 times since April.

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large share of private companies
The official said that private sector companies are also actively participating in buying cheap crude oil from Russia. This is the reason why Russia is now included in our top 10 oil supplier. Private companies account for 40 per cent of the total oil purchased from Russia since April, which includes Reliance Industries and Rosneft’s Naira Energy.

Saudi Arabia also left behind
Russia has also overtaken Saudi Arabia last month in terms of selling crude oil to India and has become the second largest supplier. Indian refinery companies bought about 25 million barrels of crude oil from Russia in May, the highest after Iraq. This was the reason that for the first time the share of oil imports from Russia has reached 10 percent. Earlier its share was limited to 0.2 per cent till the first quarter of 2021 and 2022.

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Benefit from big discount
India is the world’s third largest oil importer, which sources 85 percent of its total requirement from outside. This was the reason that when Russia offered to give its oil at a low price, the Modi government grabbed this opportunity with both hands. At the time of Ukraine crisis, where the price of crude oil was reaching around $ 150 in the global market, Russia supplied crude oil to India at a price of just $ 30 per barrel. This also helped India to reduce the increased cost on freight and kept the prices of petrol and diesel stable in the domestic market.

Tags: crude oil prices, Import-Export, Petrol diesel price

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