New Delhi: India never stopped sourcing crude oil from Russia, government sources said on Saturday, despite US President Donald Trump linking the withdrawal of the 25% penalty tariff in the framework of the proposed trade deal to New Delhi’s reported pledge to stop such purchases. Sources said India has never depended on any country’s permission to buy Russian oil and Russia remained its largest crude oil supplier even in February. He said India’s energy purchasing decisions are guided by the principle of “national interest”. “We source crude from where supply is available, competitively priced and deliverable and we will continue to do so,” a government source said.Sources said the announcement by top US officials of a “30-day grace period” for India to buy Russian oil was meant for their domestic audience.
Official says Hormuz is not the only route, only 40% of India’s crude oil passes through itThis has been our position across all administrations and geopolitical cycles,” said a government source, adding that every decision taken by the government in the petroleum sector is guided by three criteria: affordability, availability and sustainability. US Treasury Secretary Scott Besant said late Thursday that the Trump administration had granted a temporary 30-day waiver allowing Indian refiners to buy stranded Russian oil to keep supplies in the global market and ease the pressure caused by Iran’s blockade of the Strait of Hormuz.US Energy Secretary Chris Wright also later said that Washington had warned India over the purchase of additional Russian barrels destined for South Asia. Government sources said the 30-day moratorium merely removes a friction point which is not in the interest of either party to persist. Officials said that during the three years of the Russia-Ukraine war from 2022, India continued to buy oil from Moscow due to deep discounts and refinery demand despite objections from the US and EU.Suggesting that a short-term discount enabled these purchases ignores the fact that trading has continued steadily.India’s crude imports from Russia in February were a little more than 1 million barrels per day (mbd), about 20% of its total purchases, compared with 1.1 mbd in January and 1.2 mbd in December.Officials also said India has expanded its supplier base from 27 to 40 countries, and its energy security is no longer tied to the conditions of a single maritime chokepoint such as the Strait of Hormuz. “The Strait of Hormuz is not the only route for India’s crude imports. About 40% of India’s crude imports pass through Hormuz, while about 60% passes through other supply corridors that remain unaffected,” an official said.Government sources said India has over 250 million barrels (about 4,000 crore litres) of crude oil and refined petroleum products, which translates into a buffer coverage of 7-8 weeks in the supply chain.