India's Strategic Crude Oil Pursuit Balances Sanctions and Market Dynamics

India strategically sources crude oil from global suppliers while adhering to international sanctions, says IOCL Chairman A S Sawhney. With no embargo on Russian oil, India prioritizes market-based availability and pricing, ensuring energy security through diverse procurement practices and government-subsidized stability in LPG supply.

India, maintaining its strategic energy independence, continues to procure crude oil from an array of global sources, ensuring strict compliance with international sanctions, announced A S Sawhney, Chairman of Indian Oil Corporation Ltd (IOCL). He emphasized India's cautious engagement, particularly with Russian crude, ensuring no dealings with sanctioned entities.

"There is no embargo against Russian oil," highlighted Sawhney in a conversation with ANI, clarifying India's oil transactions are scrupulously conducted, ensuring insurance and transport fleets remain unsanctioned. He underscored India's reliance on the spot market, optimizing for competitive pricing rather than allegiance to any single country.

Sawhney explained India's approach to oil procurement, favorably utilizing the competitive nature of the spot market to secure advantageous rates between USD 75 to USD 80 per barrel. This flexible strategy includes sourcing from multiple nations, assuring a mix devoid of geopolitical biases.

Addressing financial dynamics, Sawhney noted IOCL's operational 'under-recovery' regarding LPG sales, which is offset by governmental compensation schemes. This fiscal support plays a crucial role in stabilizing LPG pricing for Indian consumers amidst global price volatilities.

The narrative showcases India's commitment to energy security and regulatory adherence, ensuring domestic stability in a complex international landscape.

(With inputs from agencies.)