India to Continue Buying Russian Oil Irrespective Of US Waivers: Govt
Indian refiners and oil traders have reportedly indicated that supplies remain available despite the latest expiry of the American exemption
New Delhi: The government on Monday said that India has continued buying Russian oil before, during and after US sanctions waivers. The comments of a senior official came after the United States allowed a waiver covering some Russian crude purchases to expire over the weekend.
“India’s crude purchases from Russia have not depended on the US waiver framework, and are driven by commercial considerations. Regarding the American waiver on Russia, I would like to emphasise that we have been purchasing from Russia earlier. I mean before waiver also, during the waiver also, and now also,” said Sujata Sharma, joint secretary in the petroleum ministry while briefing the media.
Indian refiners and oil traders have reportedly indicated that supplies remain available despite the latest expiry of the American exemption. Earlier, India has sought an extension of sanctions waiver from the US for procuring Russian crude oil. The US President Donald Trump had initially approved the waiver in March before extending it further, with the current waiver expired on May 16.
However, sources said that supply disruptions due to blockage of the Strait of Hormuz following the West Asia conflict had earlier forced India to request the United States to continue its waiver permitting the imports of Russian crude as supply disruptions have persisted for nearly two and half months due to the Iran war.
“It (buying oil) is basically the commercial sense which should be there for us to purchase. I think there is no shortage of crude. Enough crude has been tied up repeatedly and this, whatever waiver or no waiver, it will not affect,” the joint secretary said.
The US first issued a waiver in March this and later expanded it through an authorisation valid until May 16 to help ease pressure on global oil prices through additional supply. While Russian crude is not under blanket sanctions, Washington had earlier also urged India to reduce discounted purchases from Moscow following the Russia-Ukraine war.
Meanwhile, on the loss of oil companies, Sharma also said that a Rs 3-per-litre increase in petrol and diesel prices has helped state-run oil marketing companies trim daily losses by nearly a quarter, reducing overall losses to around Rs 750 crore per day from Rs 1,000 crore.
However, elevated global crude prices and a weak rupee continue to keep pump rates below cost-recovery levels. “A bailout package, in the form of a government subsidy to make up for losses state-owned oil companies are incurring on selling petrol, diesel and cooking gas LPG below cost, is still not on the table,” she said.
