Lok Sabha Elections Prime Minister Narendra Modi took time out from his busy schedule and openly answered the questions of the country’s biggest TV host, Rajat Sharma. By participating in India TV’s popular program ‘Salaam India’, PM Modi answered all the political questions ranging from the current politics of the country, India’s growing stature in the world, without any hesitation. When asked about the displeasure of America and European countries over the import of crude oil from Russia, he said that his job is not to please America but to make 140 crore people of the country happy.
He said, I saved crores of my countrymen from the burden of expensive fuel by importing crude oil from Russia. When the price of crude oil increased in the world, we are selling cheap petrol and diesel. ‘I don’t care about the world! I always think about the people of my country. I take every step towards giving a happy life to the people of the country. I will continue to do this kind of work in future also. Today India talks not by looking down, but by making eye contact. This change has come because of the people of the country.
India got big benefit from Russian oil
India’s strategy of continuing to buy cheap oil from Russia has resulted in saving about $7.9 billion in the country’s oil import bill during the first 11 months of the financial year 2022-23 and also helped the country reduce its current account deficit. Benchmark Brent crude prices are currently trading at US$82.17 per barrel. Data shows that imports rose 13-17 per cent during April. Data shows that its oil imports from Iraq declined by 20-23 per cent.
Countries around the world also benefited
Since India is the third largest importer of crude oil in the world, these large purchases of Russian oil have helped keep prices in the world market at a more reasonable level, benefiting other countries as well.
Helped in reducing import bill
The government has also helped cut the country’s oil import bill by allowing oil companies to buy Russian crude at discounted prices, despite pressure from Western countries to stop these purchases in the wake of the Ukraine war. Russia has now emerged as the largest supplier of crude oil to India, replacing Iraq and Saudi Arabia earlier. India has in fact become the largest buyer of Russian seaborne oil, accounting for about 38 per cent of India’s total oil imports in April. Russian oil is cheaper than Iraqi crude by about $3 a barrel in 2023-24, compared to $7 a barrel cheaper in the previous fiscal.
Share of crude petroleum imported from Russia increased
Data from the Ministry of Commerce and Industry shows that the share of crude petroleum imported from Russia in volume terms rose to 36 per cent in 11 months of FY24, while the share imported from West Asian countries (Saudi Arabia, UAE and Kuwait) declined from 34 per cent to 23 per cent. Discounts on Russian oil led to huge savings in the oil import bill. According to an ICRA report, the estimated unit value of imports from Russia was 16.4 per cent and 15.6 per cent lower than the respective levels from West Asia in 11 months of FY23 and FY24, respectively.
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