India Wants Long-Term Supply Deal For Russian Crude Oil, Urges Refiners To Negotiate Jointly: Report

Since India became a major buyer of Russian crude oil in the past couple of years, it now wants oil refiners, both state-run and private like Reliance Industries Ltd, to negotiate a long-term supply deal.

With the intention to shield the nation's economy from volatile oil prices, India wants the refiners to book at least one-third of their contracted supply at a fixed discount from Russia.

However, as per The Economic Times, Reliance is unlikely to enter this joint deal as it competes with the state-run refiners in the domestic market.

While Moscow is offering crude oil at a discount of $3 for a barrel, Indian state refiners seek a discount of $5. The government feels that a joint negotiation can boost our bargaining powers.

Earlier, Indian Oil had a long-term supply deal with Russia, but that expired at the end of March. It hasn’t been renewed yet due to the inability to reach a consensus on volumes and price.