India To Continue Russian Oil Imports Despite US Waiver Expiry

(MENAFN- KNN India) New Delhi, May 19 (KNN) India will continue purchasing crude oil from Russia regardless of the expiry of a US waiver that permitted such purchases until May 16, a senior government official said on Monday, asserting that the lapse would have no impact on the country's fuel supplies.

Waiver or no waiver, it shall not affect our supplies and all efforts have been taken to that effect, said Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas (MoPNG), at an inter-ministerial briefing.

She added that Indian oil marketing companies had been buying Russian crude before, during, and after the waiver period, and that enough crude had been tied up to ensure availability.

The US waiver had allowed countries to purchase Russian crude oil and petroleum products loaded onto vessels on or before April 17, with the deadline for such purchases set at May 16.

India had ramped up Russian crude purchases since the beginning of the West Asia conflict to bolster domestic fuel availability amid supply disruptions through the Strait of Hormuz.

OMCs Still Bleeding Despite Price Hike

Despite continued Russian crude imports, soaring global energy prices have severely strained the finances of state-run oil marketing companies.

On May 16, OMCs raised petrol and diesel prices by Rs 3 per litre - the first such increase in four years - to partially offset mounting under-recoveries. Even after the hike, OMCs continue to incur under-recoveries of approximately Rs 750 crore per day on the combined sale of petrol, diesel, and LPG, down from Rs 1,000 crore per day prior to the price revision.

Sharma confirmed that the government does not plan to extend direct financial support to OMCs for current under-recoveries.

To provide some relief on the export side, the government on May 15 reduced the export levy on diesel to Rs 16.50 per litre from Rs 23 per litre, and on aviation turbine fuel to Rs 16 per litre from Rs 33 per litre, while imposing a fresh export duty of Rs 3 per litre on petrol.

LPG Cargo Safely Delivered via Hormuz

In a positive development on energy supply, India's Shipping Ministry confirmed that an India-bound LPG carrier, the SYMI, safely transited the Strait of Hormuz on May 13 and completed discharge of its entire cargo of 19,965 tonnes of LPG at Kandla port in Gujarat on May 16.

(KNN Bureau)

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