A country located 14,900 kilometers away is helping India solve its oil crisis – a crisis India is currently facing due to the ongoing conflict between the US and Iran. India is facing an energy crisis after Iran effectively closed the Strait of Hormuz. The prices of petrol, diesel, LPG and CNG are continuously increasing. Amidst this crisis, Venezuela is sending oil consignments to India. Since the beginning of the Gulf conflict, Venezuela has emerged as India’s third largest oil supplier. Additionally, Acting President of Venezuela, Delsey Rodriguez, is scheduled to visit India next week.
**Next week: An important week for India**
Amid the ongoing energy crisis, Venezuela’s acting President, Delsey Rodriguez, will be on an official visit to India next week. The US State Department has confirmed this visit. This visit of Rodriguez is of utmost importance, as it will pave the way for important discussions on oil and energy cooperation between India and Venezuela. US Secretary of State Marco Rubio has said that Venezuela will meet India’s energy requirements, and also clarified that India is free to buy as much oil as it wants. For India, Venezuela has emerged as a viable option in this era of the Strait of Hormuz crisis. In view of the blockade in Hormuz, India is actively working on plans to set up an alternative supply chain; As a result, this visit of the President to Venezuela is of utmost importance.
**What benefit does Venezuela get from India?**
With a view to ensuring diversity in its oil imports, India currently buys oil from more than 40 different countries, and Venezuela is one of them. Following the closure of the Strait of Hormuz, India has increased its oil imports from Venezuela – a country with the world’s largest proven oil reserves. Venezuela has huge reserves of 303 billion barrels of crude oil; However, due to US sanctions and severe economic constraints, it was previously unable to export its oil. Now, as a result of US intervention, Venezuela is actively expanding its oil ecosystem and export capabilities. It is prioritizing the expansion of its oil exports, by providing more flexibility, lower taxes and exemptions to international companies. India is the world’s second largest oil importer and a major market. As a result, any energy deal with India proves to be extremely beneficial for Venezuela. By signing an agreement with India, Venezuela is on its way to securing an important market for itself.
How much oil does India import from Venezuela?
Venezuela has emerged as the third largest supplier of crude oil to India, leaving behind the United States and Saudi Arabia. Reliance Industries and other refiners have bought large quantities of cheap crude from Venezuela. According to Kpler data, India is importing 417,000 barrels of crude oil per day from Venezuela so far this month; In April this figure was 283,000 barrels.
Top 10 Oil Suppliers of India
1. Russia
2. United Arab Emirates
3. Venezuela
4. Iraq
5. Saudi Arabia
6. United States of America
7. Nigeria
8. Brazil
9. Kuwait
10. Angola