To counter the pressure from the G7 nations to impose a price restriction on Russian oil, Moscow has informed New Delhi that it is willing to supply petroleum at even lower rates than before.
“In short, the request is that India not support the G7 (Group of Seven) proposal.” “A decision on this matter will be made later after discussions with all partners,” a Ministry of External Affairs (MEA) official stated.
According to officials, these “substantial discounts” will be more than those granted by Iraq in the previous two months.
In May, Russian crude oil was $16 per barrel cheaper for India than the average Indian crude import basket price of $110 per barrel. In June, when the Indian crude basket averaged $116 per barrel, the price dropped to $14 per barrel. According to officials, Russian crude oil costs $6 less than the average crude import basket price in August.
In late June, Iraq, India’s largest oil supplier, undercut Russia by selling a spectrum of crudes that cost $9 per barrel cheaper than Russian oil. As a result, the extremely price-sensitive market has tilted dramatically back in favor of Iraq.
As a result, Russia has slipped to third place in the list of countries that supply most of India’s oil, accounting for 18.2 percent of the country’s total oil consumption. The top two suppliers are Saudi Arabia (20.8 percent) and Iraq (20.6 percent).
Even if the price issue is ignored, officials believe that a steady supply of crude oil from beyond the West Asian region should be established.