New Delhi [India], February 12 : India continues to purchase crude oil from various global suppliers while ensuring compliance with international sanctions, according to A S Sawhney, Chairman of Indian Oil Corporation Ltd (IOCL).
He clarified that while there is no ban on Russian oil, India strictly avoids transactions with sanctioned entities.
"There was no embargo on Russian oil or Russian energy. The only thing is that no negotiations or contracts should be done with sanctioned entities... If the insurance and the fleet of Russian oil are clean, and the entity supplying it to us is not sanctioned, then we are ready to deal with them," Sawhney stated in an exclusive conversation with ANI.
He emphasized that India does not prioritize oil from any specific country but also sources crude from spot market based on availability and competitive pricing.
Highlighting India's crude procurement strategy Sawhney explained that India's crude oil purchases are not fixed at a particular rate. While long-term contracts have predetermined prices, spot market purchases depend on current market conditions.
"The crude available in the spot market is usually competitive, and we buy at prevailing commercial rates," he said.
"India's expected crude purchasing price is between USD 75 to USD 80 per barrel, and efforts are made to secure it at the lower end of the range whenever possible. The crude price is expected to remain within this bracket in the foreseeable future" he added.
He also stated that for spot market procurement, India sources crude from various suppliers, including Russia, the United States, and Venezuela, without favoring any particular country.
Addressing concerns about losses for IOCL on liquefied petroleum gas (LPG) sales, Sawhney clarified that it is not classified as a "loss" but rather an "under-recovery." While IOCL does experience under-recoveries in LPG sales, the company receives financial compensation from the government.
"The amount we receive depends on the government's financial capacity and our requirement at the time," he explained. This support ensures stability in LPG supply and pricing for consumers despite fluctuations in global energy costs.
It highlights that India's approach to crude oil procurement reflects its commitment to energy security while maintaining compliance with international regulations.