Indian Petroleum and Natural Gas Minister Hardeep Singh Puri reiterated this week that there is no “moral conflict” with importing discounted Russian oil, as limiting energy imports would further increase domestic fuel prices.
In an interview with CNN’s Becky Anderson, who questioned whether India had any qualms about “benefitting from discounted rates” and purchasing large quantities of Russian oil despite Prime Minister Narendra Modi’s stated concerns about the Ukraine war, Puri said the government has a “moral duty” to ensure the regular energy supply to its 1.34 billion people, of which 60 million go to petrol pumps daily.
In this regard, he highlighted the Indian government is simultaneously providing three meals a day to 800 million people while also decreasing its revenue to ensure that petrol prices do not surge.
"Absolutely none. There is no moral conflict."
— Becky Anderson (@BeckyCNN) October 31, 2022
I asked India's Minister of Petroleum @HardeepSPuri whether there was any moral conflict around his country's importing Russian oil, he tells me without Russian oil, prices will only go up. pic.twitter.com/Q6fZ4iN5bX
India relies on imported oil for 85% of its requirements and accounts for 5% of global oil usage, consuming 5 million barrels of oil each day. Crude oil prices have increased by 22% from last year to around $95 a barrel.
Puri clarified that Russian oil accounted for merely 0.2% of Indian imports in the financial year 2022, which ended in March, but has been forced to increase reliance on Russian oil because its usual suppliers in the Middle East had diverted their supplies to Europe. Further, he asserted that India purchases as much Russian oil in one quarter as Europe buys “in one afternoon.” In this regard, he said that India would not consider a ban on Russian oil imports, saying the European Union should be asked to do so first.
He highlighted that Russia is not India’s biggest supplier, noting that Iraq was its largest supplier in September.
Had a productive meeting with the new OPEC Secretary General HE Haitham al-Ghais in Abu Dhabi today. India consumes 14% of OPEC hydrocarbon production totaling $48 bn last year. Invited him to visit India for #IndiaEnergyWeek & OPEC India dialogue in February 2023 pic.twitter.com/SCRESUHFmI
— Hardeep Singh Puri (@HardeepSPuri) October 31, 2022
Russia, however, was second on the list, with Russian oil imports up 18.5% from August at 879,000 barrels per day.
India has faced repeated warnings of “significant consequences,” particularly from the United States, over its decision to purchase Russian oil. In fact, Ukraine, too, has said each barrel India purchases has a “good portion of Ukrainian blood in it.” However, India has stood firm on its ability to take independent decisions as a sovereign nation.
Puri has frequently defended India’s decision to purchase Russian oil. Like during his CNN interview this week, during a meeting with US Energy Secretary Granholm last month, Puri said the government’s primary responsibility is to ensure sufficient energy supplies for its citizens.
Similarly, on the issue of the G7’s price cap on Russian seaborne oil exports, Puri said that while the plan has yet to be “fully spelt out,” India will “examine” the proposal in accordance with its “supreme national interest.” Previously, too, Puri has maintained a non-committal stance, saying, “If the Europeans come with a plan, let’s see how it evolves.”
40% population of Guyana is of Indian origin & Indian companies will assist the Guyanese in training engineers for upstream & downstream sectors so that they can maximise production from their landmark discoveries. pic.twitter.com/Vra97TL3eu
— Hardeep Singh Puri (@HardeepSPuri) October 31, 2022
Puri has also pushed back against Western criticism of OPEC+’s recent decision to cut oil production by two million bpd as a “sovereign” one. Speaking to Reuters, he said, “It is entirely up to the producers to determine how much they want to produce and what price they want to sell.” However, he said the alliance must recognise “the impact of their decisions.”
Despite these differences, however, the Indian petroleum minister insisted that stories about a widening rift have been created “in a TV studio,” underscoring that India remains in “healthy” discussions with its Western partners.
In fact, he has stated that India has never been asked to suspend Russian oil imports. He said this week that India has “many backup plans” if it is asked to do so but stressed that if every country stopped Russian oil purchases, it harm the global market and create severe inflationary pressure.
The oil industry has a choice.
— President Biden (@POTUS) October 31, 2022
Either invest in America by lowering prices for consumers at the pump and increasing production and refining capacity.
Or pay a higher tax on your excessive profits and face other restrictions.
In a separate interview with Bloomberg following the Adipec energy conference in Abu Dhabi, Puri asserted that an “unintended consequence” of the skyrocketing oil prices is the “accelerated” transition to green energy, with countries investing “billions of dollars” into lithium and electric vehicles.
He said, “There are fascinating things happening … We will benefit from that. We will not allow shortages of energy. If there’s a problem with one source, we’ll go to another source.”
In this regard, he lauded India’s success in bringing down the price of solar energy from 25 cents to 3 cents and noted that it has also increased its reliance on green hydrogen, biofuels, and compressed biogas.