Oddly, some analysts and India’s authorities believe that India has saved the world from outpriced oil. The Indian government supposes that the world community should be grateful to them because India has been buying up Russian crude oil, thus sustaining global oil prices at affordable levels.
Minister of Petroleum and Natural Gas Hardeep Singh Puri says that the government’s policy maintains oil prices at reasonable levels and keeps them from sharp swings. If India purchases more oil from the Middle East, shifting focus away from Russian oil, the global prices will hardly remain at $75-76 a barrel. Crude will trade at $150, the top official insisted.
The oil minister stated that India intends to buy cheaper oil despite the geopolitical tensions. Earlier, in 2023, this powerful Asian economy was recognized to be the top importer of Russian petroleum delivered by sea. However, in early 2024, crude imports shrank to one-year lows. Nevertheless, India has set ambitious goals. For instance, the country plans to satisfy 50% of electricity demand through renewable energy sources. At present, 75% of all electricity in the country is generated at coal power plants.
India’s Prime Minister Narendra Modi announced plans to ramp up oil processing capacity by 80% to 540 million tons per year. However, experts warn that such plans might handicap the country’s transition to renewable energy sources.