June 28, 2022

India will take “acceptable” steps to calm the rise in oil costs, triggered by Russia’s invasion of Ukraine, the junior oil minister mentioned on Monday, indicating the nation may launch extra oil from nationwide shares if required.

India, the world’s third greatest oil client and importer, imports about 85% of its oil wants.

“Authorities of India is able to take all acceptable motion, as deemed match, for mitigating market volatility and calming the rise in crude oil costs,” Rameswar Teli mentioned in a written reply to lawmakers.

Final month India mentioned it was ready to launch further crude from its nationwide shares in help of efforts by different main oil importers to mitigate surging international costs.

Teli mentioned in November the federal authorities had joined different main shoppers to launch 5 million barrels of oil from its strategic petroleum reserves to comprise inflationary pressures.

On Monday, Teli mentioned India is “intently monitoring international power markets in addition to potential power provide disruptions as a fallout of the evolving geopolitical scenario”.

India buys solely a fraction of its oil from Russia however has been hit arduous by a spike in international oil costs resulting from Western sanctions towards Moscow, the world’s second largest crude exporter.

The Indian basket of crude oil had jumped to $112.59/barrel by March 11, after averaging $84.67/barrel in January and $94.07 in February.

Indian oil firms haven’t raised gas costs since Nov. 4 to protect the shoppers from increased prices.

Nevertheless, to ease the import price for firms, India is contemplating a Russian provide to promote its crude oil and different commodities at a reduction, Indian authorities sources mentioned.

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