India Eyes Affordable Crude With Sanctions Against Russia As Trump Declares ‘Energy Emergency’ To Boost Oil And Gas Exports

United States (US) President Donald Trump’s announcement to boost American oil and gas production and exports could pave the way for increased US energy supplies to India.

Petroleum Minister Hardeep Singh Puri on Tuesday (21 January) emphasised the “potent possibility” of more American oil entering Indian markets, as India—one of the world’s top consumers and importers of crude—remains open to additional global supply.

In his first address after taking office on Monday, Trump vowed to declare a “national energy emergency” to ramp up US energy production and bring prices down. He also promised an increase in energy exports, aiming to make American oil a more dominant player in the global market.

“If you were to ask me whether more American energy is going to come onto the market, my answer is yes. If you say there is a potent possibility of more purchase of energy between India and the US, the answer is yes,” Puri told reporters during an industry event. He further noted that India is prepared to buy from “whoever can supply,” signalling flexibility in sourcing crude oil amid global disruptions.

In a somewhat parallel development, this week, Indian refiners Mangalore Refinery and Petrochemical Ltd (MRPL) and Bharat Petroleum Corp Ltd (BPCL) issued tenders for crude oil after intensified US sanctions disrupted Russian supply chains.

Currently, the US ranks as India’s fifth-largest crude oil supplier, accounting for over 4 per cent of India’s total oil imports in 2024. Additionally, India sources natural gas from US-based projects.

For a country that imports over 85 per cent of its crude oil needs, higher availability of American oil could ease the strain of global price volatility. Greater supply in international markets could help stabilise prices, benefiting India’s trade deficit, foreign exchange reserves, rupee stability, and inflation control.