- Russian crude imports make up 20% of India's total oil imports currently
- India is reconsidering Russian crude purchases despite prior US trade deal vows
- US granted India a one-month reprieve to import Russian crude amid Middle East conflict
Russian crude imports still account for 20% of India's overall oil imports, NDTV Profit learnt from government sources on Friday. Merely a month after vowing to stop buying Russian Crude as part of the India-United States trade deal, India is considering to buy crude from Russia.
As escalating conflict in the Middle East has rattled global energy markets and disrupted shipping routes critical to global supply, the United States granted a one-month reprieve to India, allowing the inflow of Russian crude oil imports stranded due to the Middle East conflict.
In February, India imported 1.04 million barrels per day of crude from Russia.
Interestingly, government sources told NDTV Profit that India takes its own decisions on oil purchases.
Sources told NDTV Profit on Tuesday that India has activated an 'emergency' crude supply strategy amid the rising tension in the Middle East involving Iran, Israel and the US, which has led to the closure of the Hormuz Strait, with Iran threatening to set any passing foreign ships 'ablaze'.
ALSO READ: India's 60% Crude Sourcing From Routes Other Than Hormuz: Govt Sources Deny Shortage Fears
As part of these emergency measures, India was expected to put curbs on petrol and diesel exports, and there could be higher LPG rationing. Moreover, alternative shipping routes are under active consideration.
As an update on Friday sources confired that India is now getting more energy from the other parts of the world than from Strait of Hormuz and India is in a comfortable position.
People in the know further said that things are comfortable at the LNG front as well. Only 30% of the LNG comes from Strait of Hormuz, while 10% comes from US. India is also diversifying the supply of LNG from other sources.
As the third-largest oil importer in the world, India is heavily reliant on foreign imports of oil, which makes the closure of the Strait of Hormuz quite detrimental.
However, govt sources said only 40% of India's crude supply goes through the thin corridor, with the remaining 60% coming from other areas.
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