November 27, 2024: In a significant shift in global energy trade, Russia has now emerged as India’s largest supplier of crude oil, accounting for more than 35 percent of the country’s total imports, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri confirmed on Tuesday. Speaking at the FIPI Oil and Gas Awards Ceremony, Puri highlighted the rapid change in India's oil sourcing over the past two years, with Russian crude imports surging from a negligible 0.2 percent in February 2022 to a dominant position in recent months.

"For quite some time now, Russia has been the largest supplier of crude to India," Puri said, noting that the percentage share fluctuates monthly but remains above 35 percent. He pointed out that the increase in Russian oil imports is primarily driven by global market dynamics, including price fluctuations and availability, with India strategically balancing long-term contracts and spot market purchases.

The shift underscores India's evolving energy sourcing strategies, as it seeks to diversify its supply sources in the face of global geopolitical changes. Puri emphasized that decisions about oil sourcing are made by India's oil marketing companies, which conduct floor tenders for specific crude grades. "It was as little as 0.2 percent in February 2022, but then it went up. How it will stay and where it will go, I keep saying these are not decisions that the Ministry takes," he added.

While Russia’s growing dominance is a notable development, Puri also highlighted other key suppliers to India, such as Saudi Arabia, the UAE, Iraq, Kuwait, and the United States. He pointed out that these countries continue to play a significant role in meeting India’s energy demands, with supply arrangements varying between long-term contracts and spot market purchases.

India’s diversification of energy sources comes amid a broader global energy reshuffling, and Puri noted that countries like Saudi Arabia, Iraq, and the UAE remain critical to India's energy security in the long run. "More and more energy is coming on the global scene," he said, referring to the increasing complexity of global energy markets.

Beyond crude oil imports, Puri also highlighted India’s progress in reducing fuel prices over a three-year period, a unique achievement on the global stage. "India is the only country globally to achieve a reduction in fuel prices during this period," he said, underscoring the government's commitment to energy affordability and economic resilience.

The growing significance of Russia as a major oil supplier to India marks a pivotal moment in global energy trade, reflecting broader shifts in supply chains and geopolitical alignments.