Union Minister for Petroleum and Natural Gas Hardeep Singh Puri has announced that Russia has become the largest supplier of crude oil to India, accounting for more than 35% of the country’s oil imports.
Speaking at the FIPI Oil and Gas Awards Ceremony, Mr. Puri highlighted the dramatic shift in India’s energy sourcing over the past two years, with Russian oil imports surging from a negligible 0.2% in February 2022 to consistently maintaining the top spot in recent months.
“For quite some time now, Russia has been the largest supplier of crude to India. The percentage would be upwards of 35%, but it varies from month to month,” said Mr. Puri.
This growth, he explained, is driven by global price dynamics, market availability, and India’s approach to balancing long-term oil supply contracts with spot market purchases.
India, the world’s third-largest oil consumer and importer, has traditionally relied on Gulf nations such as Saudi Arabia, the UAE, Iraq, and Kuwait for the majority of its oil needs.
However, the Russia-Ukraine conflict and ensuing Western sanctions on Russian energy have upended global oil trade flows. India, leveraging the discounted prices of Russian crude, has significantly diversified its sourcing strategy to secure energy at more affordable rates.
“How it will stay and where it will go, I keep saying these are not decisions that the Ministry takes. Our oil marketing companies floor tenders for particular grades of crude,” Mr. Puri added, underlining the operational independence of oil companies in securing energy deals based on market dynamics.
While Russia now dominates India’s crude oil imports, Mr. Puri pointed out the continued significance of other key suppliers.
“For some countries, they have long-term agreements; for others, they are buying on the spot and then it becomes a function of price, etc.
“In the foreseeable future, the major suppliers, Saudi Arabia, UAE, Iraq, Kuwait, United States are big suppliers now. More and more energy is coming on the global scene.”
Gas Hardeep Singh Puri, Union Minister for Petroleum and Natural
India’s ability to maintain a diversified energy base is critical for energy security and economic resilience. It balances long-term supply commitments with the flexibility of spot purchases, optimizing costs in response to price fluctuations in the global market.
India’s Advancements in the Energy Sector
In addition to highlighting the rise of Russian oil imports, Mr. Puri emphasized India’s broader progress in the energy sector. He pointed to key achievements, such as reducing fuel prices over a three-year reference period, a feat unique to India amid rising global oil prices.
“LPG cylinder prices in India are among the lowest worldwide, with costs as low as ₹6/day for PMUY households and ₹14/day for non-PMUY households,” he said, referencing the government’s Pradhan Mantri Ujjwala Yojana (PMUY) that has provided affordable cooking gas to millions of Indian households.
The Minister also highlighted the government’s commitment to expanding exploration acreage to one million square kilometers by 2030, with a 16% increase anticipated by 2025. This move is aimed at enhancing domestic production capacity and reducing dependence on imports.
India’s achievements in ethanol blending were another major point of discussion. Ethanol blending in petrol has grown from a modest 1.53% in 2014 to a projected 16% in 2024, with the government targeting 20% blending by next year.
“This achievement places India as the second-largest economy in biofuel blending, following Brazil,” said Mr. Puri. Ethanol blending not only reduces reliance on fossil fuels but also supports farmers by creating demand for ethanol-producing crops like sugarcane and corn.
The Union Minister also shed light on the expansion of City Gas Distribution (CGD) networks. From covering just 5.5% of India’s population in 2014, CGD networks are expected to reach 100% coverage in 2024.
This transformation has made cleaner and more efficient energy accessible to households and industries across the country, supporting India’s goals for a sustainable energy transition.
From the rise of Russia as India’s top crude supplier to the strides made in domestic energy policies, India is demonstrating its resilience and adaptability in securing energy for its growing economy.
With significant progress in biofuels, exploration, and infrastructure, the nation is well on its way to achieving energy self-reliance and sustainability in the coming decades.
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