Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Thursday assured that India is assured of its energy security thanks to a wide diversification of its crude oil suppliers.
Speaking to participants at the Urja Varta 2025 conference, Puri pointed out that India is no longer dependent on a few oil-exporting nations and now imports crude from 40 countries, up from only 27 in 2007, as a sign of a well-supplied world market.
"There is a huge amount of oil in the market. Venezuela and Iran are sanction-hit now. But will they remain sanction-hit forever? There are many countries, such as Brazil, Canada and so on, that are increasing production. I am not excessively concerned about the supplies at the moment. We have diversified our sources," Puri stated.
His remarks came in the wake of growing fears over possible U.S. sanctions against Russia's oil exports. Former US President Donald Trump had recently threatened to impose tough trade sanctions, including secondary measures against countries importing Russian crude. On July 15, Trump threatened to raise tariffs on Russian imports to 100 per cent if a solution to the war in Ukraine is not found within 50 days. He also threatened punitive measures against nations such as India and China if they don't stop importing oil from Russia.
Responding to these words, Puri said, "I have heard these threats. Some statements are said to make sure two contestants resolve a dispute."
He also emphasized how India's ongoing oil commerce with Moscow served to moderate volatility in the global energy market. Puri observed that, without this line of supply, oil prices could have skyrocketed when the Russia-Ukraine war commenced in 2022. "Crude oil prices could have gone to $130 per barrel," he intimated, pointing out that India had only received 0.2 per cent of its crude oil from Russia in the past—a level which has now increased to close to 40 per cent.
Though Russian oil has a price cap of $60 per barrel, Puri made it clear that it is not covered by sanctions imposed internationally. He again made the point that India upholds its practice of avoiding buying oil from countries under official sanctions. "Russia is one of the largest crude producers with over nine million barrels/day.". Think about the mayhem if this oil, which is roughly 10 per cent of the world's 97 million supply, disappeared from the market," Puri had stated earlier this month.
"It would have compelled the world to cut back on consumption, and as the consumers would be racing over reduced supplies, the prices would've skyrocketed to over $120-130," he added.
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