Did India's Purchase of Russian Oil Help Lower Global Prices?
Click to start listening
Synopsis
Discover how India's strategic purchase of Russian crude oil has significantly contributed to global energy price stability. Minister Hardeep Singh Puri reveals insights into the impact of these decisions on the international oil market and India's commitment to providing affordable energy solutions.
Key Takeaways
- India's purchases of Russian oil have helped stabilize global energy prices.
- The country aims to expand exploration acreage significantly by 2030.
- India is committed to providing affordable clean cooking gas to millions.
- Minister Hardeep Puri emphasizes India's role in the global oil market.
- Future plans include drilling across 2.5 lakh sq km.
New Delhi, July 11 (NationPress) Minister of Petroleum and Natural Gas Hardeep Singh Puri stated on Friday that India’s acquisition of Russian crude oil has played a crucial role in stabilizing global energy prices.
In an interview with an international news outlet, Puri remarked, “Russia stands as one of the largest crude oil producers, pumping over 9 million barrels per day. Consider the disorder that would ensue if this volume, constituting nearly 10% of the global oil supply of around 97 million barrels, were to disappear from the market. Such a scenario would compel the world to cut back on consumption, leading to consumers scrambling for the limited supply, which could have driven prices to soar beyond $120-130.”
“Under the guidance of Prime Minister Narendra Modi, India has emerged as a positive force in contributing to global energy price stability, while adeptly managing the delicate balance of energy availability, affordability, and sustainability,” the minister emphasized.
He clarified that Russian oil has not been subject to global sanctions. “Prudent decision-makers globally understand the complexities of the international oil supply chain and recognize that India is merely assisting global markets by purchasing discounted oil under a price cap from wherever feasible,” Puri explained.
“Some analysts who lack insight into the intricacies of energy markets often make unfounded criticisms of our policies,” he added.
The minister also highlighted that India is providing clean cooking gas to 330 million households at some of the lowest prices worldwide, while ensuring universal access to clean cooking for over 103 million families under the PM Ujjwala Scheme, at an incredibly low cost of just 0.4 dollars/kg or merely 7-8 cents per day.
Furthermore, Puri announced via a statement on X that India intends to explore and drill for oil and gas with renewed vigor across 2.5 lakh sq km in Round 10 under the Open Acreage Licensing Policy (OALP).
He underscored that India aims to expand its exploration acreage to 0.5 million sq km by 2025 and 1.0 million sq km by 2030.
With the prospect of discovering a Guyana-scale oilfield in the Andaman Sea, India is embarking on one of its most ambitious endeavors to enhance hydrocarbon exploration efforts within the nation, he added.
Point of View
It is imperative to recognize that India's engagement in the global oil market, particularly through purchasing Russian crude, reflects a calculated approach to maintain energy stability. Minister Puri's statements underscore India's role as a proactive contributor to global energy dynamics, highlighting the nation's commitment towards sustainable energy solutions while navigating complex geopolitical landscapes.
NationPress
27/07/2025
Frequently Asked Questions
How has India's purchase of Russian oil affected global prices?
India's purchases have helped stabilize global energy prices, preventing potential spikes that could have occurred due to reduced supply.
What is the PM Ujjwala Scheme?
The PM Ujjwala Scheme aims to provide clean cooking gas to economically disadvantaged families in India, enhancing access to affordable energy.
What are the future plans for oil and gas exploration in India?
India plans to explore and drill across 2.5 lakh sq km under the Open Acreage Licensing Policy, aiming to expand exploration acreage significantly by 2025 and 2030.
Why is Russian oil not under sanctions?
Russian oil has not been sanctioned globally, and India’s purchases are viewed as a means to stabilize the market rather than disrupt it.
What is the significance of India's role in the global energy market?
India's role is crucial as it contributes to maintaining energy price stability, especially in times of global supply chain disruptions.
