Last Updated:November 08, 2024, 15:47 IST

Union Petroleum Minister Hardeep Singh Puri says India’s decision to purchase oil from Russia amid global challenges helped avert a potential spike in global crude prices.

Hardeep Singh Puri projects a more stable pricing environment by 2026, attributing this to increased energy availability.

Union Petroleum and Natural Gas Minister Hardeep Singh Puri has said India’s decision to purchase oil from Russia amid global challenges helped avert a potential spike in global oil prices. Speaking with CNN’s Becky Anderson at the ADIPEC energy conference in Abu Dhabi, Puri added that if India had not procured Russian oil, prices could have surged to $200 per barrel worldwide.

Puri said oil would continue to play a central role in the global energy mix for the foreseeable future. He expressed optimism about the stability of oil prices, saying, “Earlier, I said I hope there will be a reduction in oil price. Today I’m more confident that there will be.”

The Union minister projected a more stable pricing environment by 2026, attributing this to increased energy availability. “As a student of the situation, I think that the likelihood of prices remaining stable and coming down are higher,” he said.

Asked about India’s recent reduction of Russian oil imports by approximately 10% in October, Puri explained that this was driven by competitive rates available from other suppliers. “There are other people willing to supply at the same competitive rate because the OPEC position is they don’t deal with price. There’s healthy competition going on. If you don’t get it from one, you get it from someone else,” he stated.

Responding to questions on whether this reduction was strategically motivated, Puri clarified that “these are oil decisions taken in the marketplace.” He elaborated that if India had shifted its demand away from Russian oil during the initial stages of the Ukraine crisis in February 2022, oil prices could have reached $200 per barrel. “So I think we did everybody a favour,” he remarked.

Puri also highlighted the significance of technological advancements, including green hydrogen, that could alter global oil demand within the next five years.

In a post on his X account, Puri reiterated, “India did the entire world a favour by buying Russian oil because if we had not done so, the global oil prices would have skyrocketed to USD 200/barrel.” He pointed out that Russian oil was not sanctioned, though a price cap was in place, which Indian entities respected.

Addressing criticisms, he noted that while some “ill-informed commentators” proposed restrictions on India, many European and Asian countries made substantial energy purchases from Russia. “Let us not forget that while some ill-informed commentators talked about putting restrictions on India, many other European and Asian nations bought much more crude oil, diesel, LNG, rare earth minerals worth billions of dollars from Russia. We will continue to buy energy from whoever offers the best rates to our oil companies,” he wrote.

Emphasizing India’s energy priorities, Puri noted, “We need to ensure steady availability, affordability and sustainability of energy for our 7 crore citizens who visit a petrol pump every day. That’s our top priority.” He highlighted that India is unique among major consumers, as it has seen fuel prices decrease significantly over the past three years, despite global price hikes.

As the world’s third-largest oil consumer, India’s decisions in the energy market remain impactful, as per the International Energy Agency’s estimates.