India will examine likely cap on Russian crude price by the West: Oil Minister Hardeep Puri

Oil Minister Hardeep Singh Puri (File image)

The Indian government will take a close look at the price limit on Russian crude oil that is being considered by the US and Europe.

Asked to comment on the buzz that state-run oil marketing companies (OMCs) may scale down or even stop sourcing crude oil from Russia, Oil Minister Hardeep Singh Puri said, “It’s completely incorrect.”

India has been buying discounted crude oil from Russia against the backdrop of high prices internationally and Western nations scaling down their reliance on Russian energy. Puri said crude sourcing will continue to be a “commercial decision” for OMCs.

India has not yet taken an official stand on joining a US-led global initiative to cap prices of Russian crude oil given that the country has managed to clinch oil cargos at steep discounts.

“We will have to look at it,” Puri said on the sidelines of an international conference on biofuels organised by the Society of Indian Automobile Manufacturers.

On biofuels

India has achieved 10 percent ethanol blending with petrol five months ahead of its target earlier this year and is confident of meeting the 20 percent target by 2025, Puri said.

“I am on record to say we will utilise our G20 presidency (the country assumes the chair on December 1) to try and set up an international biofuel alliance,” he said.

India's ethanol demand is slated to grow up to 10.16 billion litres by 2025 and the government is keen that OMCs increase the number of petrol pumps selling biofuels, he added.