India’s ability to maintain reasonable global crude prices hinges on its strategic acquisition of oil from Russia, asserted the country’s Minister of Petroleum and Natural Gas, Hardeep Singh Puri. Speaking on the sidelines of the India Energy Week conference in Goa, he emphasized the world’s appreciation for India’s reliance on Russian oil, a move seen as essential for price stability.
Puri cautioned that an increased shift towards Middle Eastern oil could have severe repercussions, warning that oil prices, currently at $75 or $76, could skyrocket to $150. Since Russia’s incursion into Ukraine in February 2022, India’s refineries have actively procured discounted Russian oil, making Moscow the primary source, accounting for approximately 36% of India’s crude imports. This surge has resulted in a notable drop in India’s Middle Eastern oil imports to a historic low.
Despite global uncertainties, including heightened tensions in the Red Sea and fears of escalating conflicts in the Middle East, Puri expressed confidence that India’s oil prices would remain stable. He attributed this confidence to a combination of factors, including the global economic slowdown and record U.S. oil output.
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India’s role as a key driver of global oil demand growth from 2023 to 2030, as highlighted by the International Energy Agency, is noteworthy. Prime Minister Narendra Modi’s ambitious plans to increase the country’s annual oil refining capacity by almost 80% to 450 million tons, however, pose a potential challenge to India’s renewable energy goals.
Currently, India aims to derive 50% of its electricity from renewable sources by 2030 and achieve 100% renewable energy transition by 2050, while still relying on coal-fired plants for 75% of its total power. Minister Puri remains optimistic about meeting these renewable targets, stating that significant progress has been made, with major oil companies also setting net-zero targets for 2035 and 2040.
