According to data from energy cargo tracker Vortexa, Russia surpassed longstanding suppliers Saudi Arabia and Iraq to become India’s top oil supplier in October. Russia provided 9,35,556 barrels per day (bpd) of crude oil to India in October, which was a record high. However, Russia only accounted for 0.2% of India’s total oil imports in the year ending March 31, 2022.
It currently accounts for 22% of India’s total oil imports, surpassing Saudi Arabia’s 16% and Iraq’s 20.5%.
Since it began trading at a discount as the West avoided it as retaliation for Moscow’s invasion of Ukraine, India’s thirst for Russian oil has increased. In comparison to 1.05 million bpd from Iraq and 9,52,625 bpd from Saudi Arabia, India purchased just 36,255 barrels per day of crude oil from Russia in December 2021, according to energy intelligence company Vortexa.
The following two months saw no imports from Russia, but in March—shortly after the Ukraine war began in late February—they resumed.
Russian oil was imported by India at a rate of 68,600 barrels per day (bpd) in March, 2,66,617 bpd in April, and a peak of 9,42,694 bpd in June. But at 1.04 million bpd of oil, Iraq was India’s leading supplier in June. In that month, Russia surpassed China as India’s second-largest supplier.
Over the next two months, imports somewhat decreased. According to Vortexa, they were 8,76,396 bpd in September and 8,35,556 bpd in October. With 8,88,079 bpd of supplies in October, Iraq dropped to No. 2, followed by Saudi Arabia at 7,46,947 bpd.
The Indian government has fiercely defended its commerce with Russia, claiming that it must purchase oil from the country where it is most affordable.
“In FY22 [April 2021 to March 2022], the purchases of Russian oil was 0.2% [of all oil imported by India]. We still buy only a quarter of what Europe buys in one afternoon,” Oil Minister Hardeep Singh Puri told CNN in Abu Dhabi last week. “We owe a moral duty to our consumers. We have a 1.34 billion population and we have to ensure that they are supplied with energy…whether it’s petrol, diesel.”
He had responded, “Absolutely none. There is no moral conflict. We don’t buy from X or Y. We buy whatever is available. Government does not buy, it’s the oil companies which do the buying.” India imports from Russia amid that country’s dispute with Ukraine.
India has also remained uncommitted to the G7 proposal to cap the price of oil acquired from Russia in an effort to reduce Moscow’s income. The G7 group of countries includes the U.K., U.S., Canada, France, Germany, Italy, and Japan.
India will review the plan as soon as it is finalised and communicated, according to Mr. Puri.
It will “respond according to its supreme national interest.” Emphasising that India would look to source crude oil from diverse sources, he had said that the country will buy from Guyana and Canada as well.
