India is supporting a smooth transition towards clean energy, emphasising access to both traditional fuels and a gradual shift towards cleaner alternatives, without demonizing fossil fuels. Concerns have arisen regarding potential underinvestment in the oil and gas industry due to the global focus on green energy, which could result in more frequent energy price fluctuations.
International experts suggest maintaining the resilience of existing fossil fuel-based energy systems to safeguard consumers and the global economy from such price shocks. India advocates for essential investments in oil and gas projects to ensure sufficient production to meet future global demand while also accelerating the transition to green energy.
As the third-largest consumer of crude oil heavily reliant on imports for over 85% of its needs, India is highly vulnerable to volatility in the global oil market. The country also seeks greater access to clean energy technologies and climate finance for itself and the global South.
Amidst market fluctuations following Russia’s invasion of Ukraine in February 2022 and coordinated crude oil production adjustments by major producers, India has implemented measures such as diversifying oil import sources to mitigate risks. Despite surging global oil prices, India’s public sector oil marketing companies have maintained stable petrol and diesel prices since early April 2022, with the government reducing central excise duty on two occasions to alleviate consumer burdens.
As reported by The Indian Express, Indian refiners actively pursue opportunities to procure oil at favourable prices, with recent purchases of discounted Russian and Venezuelan crude. As the West avoids Russian oil due to geopolitical tensions, Russia offers substantial discounts, prompting Indian refiners to increase purchases. Similarly, Indian refiners have resumed buying cheaper Venezuelan crude following eased US sanctions, exploring alternative crude sources to ensure a diverse supply chain.
