💰 Economy
No US pressure to cut Russian oil, says Petroleum Minister Puri
In 60 seconds: Petroleum Minister Hardeep Singh Puri said on Tuesday that India has faced no pressure from the US to cut its Russian oil imports. 'I never felt anything,' he said. Purchases depend on discounts and prices compared with other grades, he added. Indian refiners have recently bought less Russian oil amid competition from China, while crude imports from the Middle East rose back to pre-war levels in September.
Why it matters
India imports most of its oil. Where it buys from affects fuel prices, the import bill and India's ties with the US, Russia and Gulf countries.
Explain it simply
A chai seller buys milk from whichever dairy gives the best price that week. If one dairy stops giving a discount, he switches. India buys oil the same way.
The 3-minute read
What happened
Speaking at an industry event, Puri said purchases of Russian oil are linked to discounts and pricing versus other grades. 'Whatever people say or do, ultimately it is anchored in their self-interest,' he said. He added that India is expanding refining capacity for local demand and exports.
Background
Before the Ukraine war, Russia supplied just 0.2% of India's oil imports. Discounts after the war changed that. The US has criticised India's purchases before, and in 2025 it added a penalty tariff over them.
How it works
Ship-tracking data show Indian refiners cut Russian purchases in recent months as China competed for the same cargoes. As more discounted Gulf oil became available, Russian imports fell.
What's next
With the Iran war keeping oil above $110 a barrel, India will keep switching between suppliers for the best price.
What it means for you
Cheaper crude, from any country, helps keep petrol, diesel and cooking gas prices in check.
Key numbers
- 0.2%: Russia's share of India's oil imports before the Ukraine war
- ~$113: Brent crude per barrel on Tuesday
Both sides
- Government of India: Oil is bought on price; there is no outside pressure.
- US critics: India's Russian oil purchases help fund Russia's war.
Key terms explained
- Refiners
- Companies that process crude oil into fuels.
- Discounts
- A lower price than the market rate, offered to win buyers.
The story so far
- 2022: Russia–Ukraine war begins; India starts buying discounted Russian crude. Before the war, Russia supplied only about 0.2% of India's oil imports. Discounts on Russian crude after the war made it one of India's biggest suppliers.
- Today: Puri: no US pressure on Russian oil
Exam notes (UPSC, SSC, Banking, PSC)
- India is the world's third-largest consumer of oil and imports most of its crude.
- Brent crude is a global benchmark price for oil.
- A refinery turns crude oil into fuels such as petrol, diesel and jet fuel.
- The Ministry of Petroleum and Natural Gas oversees India's oil sector.
Likely exam question: How does India decide where to buy crude oil from? Discuss the link between oil imports and energy security.