Union Minister of Petroleum and Natural Gas Hardeep Singh Puri said the government feels no pressure regarding the supply of Russian oil to India if the proposed price cap by G7, the group of seven advanced economies, is implemented.
“Narendra Modi government feels no pressure,” the minister said, responding to a query on whether India is concerned about the shipping of Russian oil to the country once the price cap is imposed on oil exports from Russia.
Puri added that he had no “anxiety” on the matter.
On September 2, the G7 countries agreed to the future implementation of a price cap on oil exports from Russia to limit its largest source of income.
According to the G7 decision, transportation services such as shipping and insurance will be allowed for oil exports from Russia only if oil is purchased below or at the price cap. The G7 plans to introduce the price cap on December 5.
Moscow had responded by saying that it would stop selling oil to countries that impose a price cap on Russian oil, destabilising global oil markets.
Puri had earlier said that 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.
He maintained that crude sourcing will continue to be a “commercial decision” for oil marketing companies (OMCs).
LNG supply from Russia’s Gazprom
The minister said that issue of supply disruptions of liquefied natural gas (LNG) from Russia’s Gazprom to GAIL is expected to be resolved soon.
“We have a time-tested relationship with the country involved and entities involved. The discussion is going on and my expectation is that it will be resolved,” said Puri.
GAIL had signed a contract with Gazprom in 2012 to supply 2.5 million tonnes of LNG annually for 20 years. But since May 2022, Gazprom has been diverting LNG supplies to gain from the soaring global gas prices and has defaulted on the long-term commitment to India. This has forced GAIL to buy expensive gas from the spot market and this has impacted supplies to end-user industries like fertilizer manufacturing.
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