India Open To Expand Oil Purchases From US, But Needs The Right Price: Commerce Secy

India is open to expand oil purchases from the United States, provided that it comes at the "right price", Commerce Secretary Rajesh Agrawal said on Wednesday, during a press briefing in New Dehi.

The comments assume significance as they come amid the ongoing trade deal negotiations between New Delhi and Washington. The finalisation of the pact will lead to a reduction in tariffs on Indian imports, which are presently as high as 50%.

Out of the total tariffs, 25% have been levied on India as a "penalty" for its continued purchase of discounted Russian crude oil.

Agrawal, who is among the key negotiators on the Indian side, underlined that the country would like to diversify its energy imports. In the past, energy purchases by India from the US has touched $22-23 billion, he pointed out.

India still has headroom of $12-13 billion to increase its energy purchase from the US, the commerce secretary noted.

As per official data, India's crude imports from the US in the first of calendar year 2025 stood at 8.5 million tonnes, accounting for 3.5% of the country's overall imports. The lion's share was held by Russian crude, which accounted for 89.5 million tonnes or 36.3% of the total imports.

India has maintained that its decision on how and where to buy the crude from will depend on its energy security needs.

The US, while increasing tariffs on India from 25% to 50% in August, accused New Delhi of "profiteering" by buying cheaper Russian crude and reselling the refined product in the western market.

India had retaliated, pointing out that Washington "had encouraged" its purchase of Russian crude following the outbreak of Ukraine war, in a bid to "maintain stability" in the global energy market.

Despite the tariff jolt, India and the US are continuing their trade negotiations, with multiple round of talks being held so far.