Petrol & Diesel Update: India to continue Russian oil imports; no crude shortage, says Govt

India has assured that its crude oil imports from Russia will continue irrespective of changes in US sanctions waivers, signalling stability in domestic fuel supply amid elevated global crude prices and the ongoing West Asia crisis. The Centre on Monday also indicated possible relief on petrol and diesel prices as losses of oil marketing companies (OMCs) have narrowed in recent weeks.

Speaking at an inter-ministerial press conference, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, said India’s crude procurement strategy remains unchanged and is guided purely by commercial considerations and supply security.

Russian oil imports to continue

Sharma clarified that India has been importing Russian crude before, during and after the US sanctions waiver period, and any change in Washington’s stance would not affect India’s energy security.

“We have been purchasing from Russia earlier, before the waiver also, during the waiver also, and now also,” she said.

According to the petroleum ministry, India has already tied up sufficient crude supplies and there is no shortage of oil in the country despite geopolitical tensions in West Asia and concerns over global shipping routes.

The government’s statement comes after a key US waiver linked to Russian seaborne oil reportedly expired over the weekend, triggering speculation over possible supply disruptions.

OMC losses reduce to Rs 750 crore daily

The Centre also said losses of OMCs have started declining after the recent spike in petrol and diesel prices.

Sharma stated that under-recoveries of state-run fuel retailers currently stand at around Rs 750 crore per day, compared to nearly Rs 1,000 crore daily earlier.

However, the government clarified that no bailout package for OMCs is under consideration at present.

The reduction in losses is being seen as a positive signal for fuel retailers as international crude markets remain volatile due to the prolonged West Asia conflict.

No shortage of crude oil or LNG

Officials said India’s energy inventory position remains comfortable despite disruptions in global markets over the past one-and-a-half months.

The petroleum ministry said sufficient crude oil and LNG inventories are available across the country and there is no “dry out” situation anywhere.

The government also noted that fuel demand patterns are gradually shifting from bulk sales back towards regular pump sales.

Crude oil prices remain elevated

Global crude prices continue to trade at high levels amid fears of supply disruptions around the Strait of Hormuz and escalating tensions in West Asia.

International benchmark Brent crude was trading above $110 per barrel, while WTI crude remained above $106 per barrel during Monday’s session.

Russian crude has emerged as a major component of India’s oil import basket over the past few years due to discounted pricing compared with other global benchmarks.

The latest remarks from the government indicate that India is likely to maintain Russian oil purchases as long as supplies remain commercially viable and accessible.

Fertiliser availability adequate for kharif season

At the same press conference, Aparna Sharma, Joint Secretary in the Ministry of Chemicals and Fertilisers, said fertiliser availability for the ongoing kharif season remains above 50 per cent.

She also said there has been no major increase in fertiliser MRP so far despite global commodity volatility.