Kamal Ghorui
India has reportedly approached the United States to extend its waiver on Russian oil imports as the Strait of Hormuz continues to see disruptions for 75 days now, straining oil supplies across the world. The US had first cleared the arrangement in March and expanded it later, with the current authorisation set to remain valid until May 16. The waiver was introduced to help stabilise oil markets by allowing additional crude supplies. While Russian oil is not under blanket sanctions, Washington has repeatedly urged India to reduce discounted purchases as part of efforts to pressure Moscow over the war in Ukraine, Bloomberg reported.With the Middle East crisis that began on February 28 still intensifying, Indian officials have told Washington that securing a stable energy supply remains a priority. They have also warned that continued volatility in oil markets could have broad economic consequences.
Back in April, the US treasury department extended the sanctions waiver on Russian oil, giving temporary relief to countries importing crude from Moscow amid tight global supply conditions. A fresh licence issued allowed the purchase of Russian oil and petroleum products that were already loaded onto ships by that date. The waiver will remain in effect until 12:01 am (0401 GMT) on May 16, replacing an earlier exemption that expired on April 11.
India’s import of Russian crude
India’s imports of Russian oil have continued at record levels, as refiners accelerate purchases ahead of the waiver deadline. In May so far, inflows have reached a record 2.3 million barrels per day, according to Kpler data, supported by the allowance for already-loaded cargoes. Forecasts from Kpler suggest monthly inflows could still average about 1.9 million barrels per day.Meanwhile, according to a Reuters report, India reportedly declined Russia’s offer to supply liquefied natural gas (LNG) cargoes that fall under US sanctions, even as energy pressures rise due to tensions in the Middle East. The decision has resulted in at least one Russia-linked LNG shipment being stranded near Singapore while talks continue over permitted supplies.India shared its stance during Russian deputy energy minister Pavel Sorokin’s visit to New Delhi on April 30, when he met petroleum and natural gas minister Hardeep Singh Puri and other officials. Sorokin is likely to return in June for further talks.
Energy flow in India
The Centre has repeatedly assured that India has adequate supply of fuels and no dry outs are reported. Earlier this week, Union petroleum and natural gas minister Hardeep Singh Puri said that supplies of fuel and cooking gas remain stable despite global tensions. Speaking at the CII Annual Business Summit, Puri said India currently has crude oil and LNG reserves sufficient for 69 days, while LPG stocks can last up to 45 days. He said these levels rule out any immediate risk to supply disruption. “There is no supply issue, have 69 days of crude oil, LNG stock and 45 days of LPG stock,” he said. He also noted that the government has significantly increased LPG production to strengthen supply security, raising daily output from 35,000–36,000 tonnes to 54,000 tonnes in response to geopolitical tensions in the Middle East.
