In a move that could ease fuel cost concerns significantly India has been buying oil from Russia at a 'huge discount' amid a barrage of sanctions on the country due to its invasion of Ukraine.
Reports indicate that, Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Ltd, have together purchased 5 million barrels of Russian crude oil in the past few weeks. Russian Oil is being procured with a discount as large as $20-$25/bbl. The cost of crude at delivery is hence significantly lower than the prevailing price of over $100/bbl.
Taking advantage of this India's import of Russian oil in March has quadrupled as per reports, prior to January 2022 Russian oil constituted only 1% of India's import basket.
As some reports said, Russia has exported 360,000 barrels a day of oil to India in March so far, nearly four times the 2021 average.
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Russia has been facing a slew of sanctions from countries around the world that has held down its ability to do business globally.
The world's third-largest crude oil consumer imports 85% of its needs, however, Russia is just 1% of this, as per the annual data till last year.
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