India is likely to continue buying Russian oil despite a US waiver that ended on 16 May, Sujata Sharma, joint secretary in the petroleum ministry, told reporters today.
"Regarding (the) American waiver on Russia, I would like to emphasize that we have been purchasing from Russia earlier... I mean before waiver also, during waiver also, and now also," she told at an inter-ministerial media briefing, adding that refiners take the final call on a commercial basis. But the volume of purchases after the deadline remains uncertain.
Emphasizing the need to ensure adequate crude stockpile availability in the country, the government also said it continues to secure crude volumes from alternative sources.
The government refrained from sharing details of any ongoing negotiations with the US. Indian refiners till last week had been weighing their crude buying options and awaiting an extension of the US waiver on fresh Russian oil bookings.
The waiver allowed purchases of Russian crude loaded onto vessels before 17 April for delivery by 16 May, even if sellers and ships carrying the cargoes are under US sanctions.
India's crude imports have remained consistent at 4.5mn b/d during March and April, rising slightly to 4.7mn b/d in May, but still below 5.2mn b/d in February, according to data from market intelligence firm Kpler. Russian oil accounts for the majority of these imports.
Russian oil has made up close to 45pc of total imports since March, when the US waiver was issued.
A decline in crude loadings following recent drone strikes on oil infrastructure in Russia is also expected to affect supplies to India.
Russian oil imports are expected to total 2.1mn b/d in May, with several vessels arriving at Indian ports even after the deadline, Kpler data show.
Meanwhile, the government also informed that a hike in fuel prices also have helped them lower losses of oil marketing companies to about 7.5bn rupees ($78mn) a day on the sale of auto fuels and domestic LPG, down from Rs10bn/day earlier.
Indian state-run oil refiners raised gasoline and gasoil prices for the first time in four years — the most widely used transport fuel in the country — by Rs3 litre ($0.031/litre). Gasoil prices in New Delhi, will now cost Rs90.67/litre, and gasoline will cost Rs97.77/litre.
