Union Petroleum Minister Hardeep Singh Puri has firmly responded to US President Donald Trump’s recent threat of imposing a 100 percent tax on countries purchasing crude oil from Russia. Puri emphasised that India retains its sovereign right to source crude oil from wherever it chooses, and Trump’s remarks pose no pressure on the country’s energy decisions.
Speaking to media about the potential implications of Trump’s proposed sanctions on India’s fuel industry, Puri underlined India’s diversified oil procurement strategy and its preparedness to handle any external challenges.
Puri noted that Russia contributes approximately 10 percent of the world’s daily oil supply, and sidelining it would significantly disrupt global markets. He warned that if more countries are forced to shift their imports to OPEC producers, global oil prices could surge drastically, potentially reaching between $130 and $140 per barrel.
He further explained that India has made strategic efforts over the past decade to expand its oil import sources. While earlier India relied on just four countries for crude, it now imports from 27 nations. This diversification, he said, is the result of consistent policy efforts to reduce vulnerability and enhance energy security.
The minister also highlighted India’s growing role in the global energy market. He pointed out that India accounted for 16 percent of the growth in the international energy market over the last decade. According to the International Energy Agency, India is projected to contribute 25 percent of the growth in global energy demand over the next 20 years.
Puri addressed the broader challenge of reducing oil consumption, arguing that it’s not as simple as cutting back by a fixed percentage. He noted that in many parts of the world, energy access is still a challenge, people struggle with heating in the winter and cooling in the summer. As a result, reducing demand by 10 percent without alternatives is impractical and will only result in greater pressure on other suppliers, pushing up prices.
The minister also reflected on the global energy landscape, particularly the impact of sanctions on major oil producers like Iran and Venezuela. He questioned the long-term viability of such sanctions and pointed to emerging suppliers, Brazil, Canada, and Guyana, as signs that the market is constantly evolving. Puri assured that India is ready to adapt to any scenario that arises.
Trump’s warning came amid rising tensions over the Ukraine war, especially after Russian President Vladimir Putin showed little interest in renewed peace negotiations. India, one of the largest consumers of Russian crude, has significantly increased its imports since February 2022. With Western sanctions allowing certain exemptions for energy trade, Indian refineries have benefited from discounted Russian oil, which now accounts for nearly one-third of India’s total crude imports, up from less than one percent before the conflict began.
Trump has reportedly stated that if Russia does not end the war in Ukraine within 50 days of a potential return to the White House, he would implement additional tariffs on countries continuing to import Russian oil.
Comments