Business & Economy

Indian Gov’t Asks Public & Private Sectors to Co-Negotiate With Russia for Crude Discounts

© AP Photo / PANKAJ NANGIACrude oil
Crude oil  - Sputnik India, 1920, 22.05.2024
After China, India is the second largest importer of Russia in the world, with Russia supplying a minimum of 1 million barrels per day to the South Asian nation since March 2022.
India asked public and private sector firms engaged in refining crude in the country on Wednesday to join hands to negotiate discounts from Russia on oil contracts inked by the two sides.
As per a report published by the South India-based media outlet, Deccan Herald, the move is in line with the Indian Prime Minister Narendra Modi-led government's emphasis on securing the best deal from Russia to provide a cushion to domestic consumers whose pockets could be impacted due to volatility in oil prices.
By urging refiners of the public and private sectors to cooperate to finalize long-term contracts of crude from Russia that would have a fixed discount on the price.
The government is looking to gain a fixed discount on at least 33 percent of the overall contracts signed with Russian oil-producing companies.

Previously, India's state-owned oil refiners — India Oil Corporation Limited (IOCL), Bharat Petroleum, and Hindustan Petroleum — jointly negotiated favorable terms for their supplies of crude from West African and Middle Eastern nations.

Taking a cue from that, the state authorities now want these companies to work with Reliance Industries Limited, the largest private sector player in India's oil market to conclude long-term contracts for oil supplies from the Eurasian nation.
Earlier, IOCL secured a long-term arrangement with Moscow on crude supplies. But that agreement expired at the end of the last financial year in March. And the deal for 2024-25 hasn't been renewed yet.
The government's proposal to the state-run and private oil refiners amid growing realization in India that crude supplies from Russia were essential for a stable domestic market.
Indian External Affairs Minister Subrahmanyam Jaishankar said this month that energy cooperation with President Vladimir Putin's government helped stabilize oil prices in the world's largest democratic state, which in turn were fueling its economy.
An oil pump is seen in Almetyevsky District, Republic of Tatarstan, Russia - Sputnik India, 1920, 18.05.2024
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