In the wake of Russia's invasion of Ukraine in February 2022, India's strategic decision to boost oil imports from Russia has been credited with preventing potential chaos in the global crude oil market.
The petroleum and natural gas ministry revealed that by absorbing 1.95 million barrels per day of Russian oil, India played a pivotal role in averting a significant surge of $30-40 per barrel.
Addressing the department-related parliamentary standing committee, a representative from the petroleum ministry emphasised the delicate nature of the crude oil market.
The representative, as reported by Indian Express, underscored that even a minor reduction in OPEC's (Organization of the Petroleum Exporting Countries) production could lead to a substantial increase in oil prices.
With Western nations distancing themselves from Russian oil, India capitalised on the situation, becoming one of the top importers of crude oil.
Despite facing challenges related to Western sanctions on Russia, Indian refiners encountered issues such as payments, logistical arrangements, shipping, and insurance.
The petroleum ministry acknowledged these challenges, noting that not all Indian banks smoothly processed payments in dollars for Russian oil purchases.
Nayan Dwivedi is Staff Writer at Swarajya.
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