Union Petroleum Minister Hardeep Singh Puri has reiterated that India is under no external pressure to discontinue its purchases of Russian crude oil. Speaking at the 29th Energy Technology and Innovation Meet in South Goa, Puri emphasized that India's oil procurement strategy is solely driven by commercial considerations and the imperative of ensuring the nation's energy security.
“I have never felt any pressure,” Puri stated, clarifying that India is not currently committed to buying Russian oil specifically, but rather sources crude from suppliers offering the most competitive prices for a particular grade at the point of negotiation. This stance comes amid heightened international scrutiny over India's continued Russian oil purchases and Western efforts to curb Moscow's oil revenues following the invasion of Ukraine.
Diversifying Energy Sources and Ensuring Security
Puri acknowledged international restrictions on entities like Rosneft and Lukoil, noting that buyers have the flexibility to source oil from a diverse range of suppliers, including the United Arab Emirates. He underscored India's broader strategy of diversifying its energy investments and sourcing, which includes significant investments in Saudi Arabia and other global locations.
As a major energy-consuming nation, India cannot compromise on its energy security, especially in an environment marked by geopolitical developments and volatility in international markets. Procurement decisions are a complex interplay of commercial and supply factors, with the government consistently aiming to secure reliable supplies while effectively managing costs for consumers and the broader economy.
India's Ambition as a Global Refining Hub
Beyond current procurement, Puri also outlined India's robust ambitions to strengthen its position as a global refining hub. He projected that the country's refining capacity is set to increase significantly, from approximately 290 million tonnes per annum currently to 300 million tonnes by 2030.
This expansion, Puri explained, will enable India to comfortably meet its domestic energy requirements while simultaneously increasing its supply of petroleum products to international markets. He drew a contrast with Europe and other Western markets, where refining capacity has seen declines, estimating that Europe alone is losing at least 250,000 barrels per day of refining capacity annually. India's existing facilities are scaling up, with some refineries expanding from 3 million tonnes to 6 million tonnes, and others from 6 million tonnes to 9 million tonnes, positioning India to supply more products, including diesel, both domestically and overseas.