Not worried about G7 price cap on Russia oil: Hardeep Singh Puri


India has diversified its sourcing of crude oil and is not worried about the proposed price cap on Russian oil, said Hardeep Singh Puri, Union minister for petroleum and natural gas, and housing and urban affairs.

“There is a fascinating marketplace for oil and gas out there. No matter what you decide, energy — be it crude oil or refined products — does not have the stamp of any nation. I am not concerned about the situation after December 5 (when the price cap by G7 nations comes into effect). Europe today is still buying 3 times more energy from Russia than we are,” he said at the Times Now Summit 2022. The G7 is looking to cap the price of Russian seaborne oil between $65 and $70 a barrel.

This is an economic measure in retaliation to Russia’s invasion of Ukraine. The measure will be implemented through reinsurers and shipping companies based out of Western countries which have been directed to curb sales of Russian crude oil if it’s sold above a set price. Japan will be exempted from this. Responding to a question on how India hopes to meet its energy requirements after the sanctions kick in, Puri said, “We have played and we will continue to play the market card.

Last year, we sourced our ener gy requirements from 27 nations, the number has now gone up to 39. Our energy imports from the US have grown by 1,300% over the past few years and now we are buying energy worth $20 billion from there.” “I don’t foresee any difficulty in procuring energy and am confident of securing it at affordable prices.” Puri said in the days to come, India can buy oil from either the US, Guyana or any new source.

“It is a global challenge but we have and we will convert it into an opportunity.” Commenting on the domestic fuel prices and the hit that oil companies took while keeping pump prices in check, Puri said that commercial entities have contributed by foregoing recovery on fuel sales. “The PSU oil marketing companies had borne a loss of `28,000 crore, and we gave them a budgetary support of `22,000 crore. This time too there is an expectation that there will be a bailout, and we will try for the same,” he said.


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