Is India's Oil and Gas Import Policy Driven by Consumer Interests?
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Synopsis
India is asserting its import policy for oil and gas is strictly aligned with the interests of its consumers, amidst rising global energy volatility. The strategy ensures stable prices and diversified sourcing, especially in light of geopolitical pressures.
Key Takeaways
- India's oil import policy prioritizes consumer interests.
- Recent geopolitical discussions are influencing energy strategies.
- India has diversified its oil sourcing significantly.
- Crude oil prices could have surged without Russian imports.
- India remains committed to principles against purchasing from sanctioned nations.
New Delhi, Oct 16 (NationPress) India has emphasized that the nation’s oil and gas import strategy is solely focused on the needs of the Indian consumers amidst the unpredictable global energy landscape.
This declaration followed US President Donald Trump's remarks that Prime Minister Narendra Modi assured him India would decrease its acquisition of Russian crude oil.
“India is a major importer of oil and gas. Our persistent priority is to protect the interests of the Indian consumer in this volatile energy climate. Our import policies are entirely driven by this aim, focusing on maintaining stable energy prices and secure supplies,” stated an MEA announcement.
“Regarding the US, we have sought to enhance our energy procurement for many years, making steady progress over the last decade. The current administration is keen on strengthening energy cooperation with India, and discussions are ongoing,” it further noted.
On Wednesday, Commerce Secretary Rajesh Agrawal mentioned that energy purchases from the US, primarily crude oil, have dropped from $25 billion to around $12–13 billion in the last seven to eight years. “There is a potential of about $12–15 billion that we can acquire without concerning ourselves with refinery configurations,” he remarked when asked about increasing oil imports from the US.
“We have a bilateral commitment, and in our ongoing discussions, we have positively indicated that India aims to diversify its energy import portfolio. This is the optimal strategy for a large buyer like India,” he clarified.
Earlier, Minister of Petroleum and Natural Gas Hardeep Singh Puri noted that India has diversified its oil purchasing sources in the global market, alleviating concerns over any US restrictions on Russia's oil exports.
Puri further explained that India's oil imports from Moscow have been crucial in stabilizing global prices, asserting that crude oil prices could have surged to $130 per barrel without the India-Russia oil trade at the onset of the Ukraine war in 2022.
Before the Russia-Ukraine conflict, India sourced a mere 0.2 percent of its crude imports from Moscow, which has now escalated to nearly 40 percent.
The minister clarified that Russian crude is always priced under a cap of $60 per barrel but has never faced sanctions. India remains steadfast in its policy of not purchasing crude oil from any nation under sanctions, Puri affirmed.
Point of View
India’s approach to its oil and gas imports showcases a commitment to consumer welfare while navigating complex international relations. The emphasis on diversification indicates a strategic foresight essential for energy security and price stability.
NationPress
16/10/2025
Frequently Asked Questions
What drives India's oil and gas import policy?
India’s oil and gas import policy is primarily driven by the interests of its consumers, ensuring stable prices and secure supplies in a volatile market.
How much has India reduced its oil imports from the US?
India's energy purchases from the US have decreased from $25 billion to approximately $12–13 billion over the past seven to eight years.
What is the significance of Russian crude oil for India?
Russian crude oil has played a crucial role in stabilizing global oil prices, accounting for nearly 40% of India's imports today.
Is India under any sanctions regarding oil purchases?
India maintains a firm stance on not purchasing crude oil from countries under sanctions, adhering to its principles in international trade.
What is the aim of India's energy procurement strategy?
The aim of India's energy procurement strategy is to diversify sources and safeguard the interests of Indian consumers amidst global energy fluctuations.
