The Ministry of Petroleum and Natural Gas has promised adequate supplies of crude oil for Indian refineries.
“The Government has put in place a robust plan to ensure that there is adequate supply of crude oil to oil refineries from May onwards. There will be additional supplies from other major oil producing countries from different parts of the world,” a statement from the Ministry said. The statement comes in light of the US moving to end the waiver given to India and seven other countries for crude oil imports from Iran.
The refineries are fully prepared to meet the national demand for petrol, diesel and other petroleum products, the Ministry added.
In a move that is intended to bring Iran’s oil exports to zero, denying the regime its principal source of revenue, US President Donald Trump decided not to reissue Significant Reduction Exceptions (SREs) when they expire in early May. Trump tweeted on Monday: “Saudi Arabia and others in OPEC will more than make up the oil flow difference in our now full sanctions on Iranian oil.”
A White House statement said, “The US, Saudi Arabia, and the UAE, three of the world’s great energy producers, along with our friends and allies, are committed to ensuring that global oil markets remain adequately supplied. We have agreed to take timely action to assure that global demand is met as all Iranian oil is removed from the market.”
Responding to the US move, the official spokesperson of the Ministry of External Affairs said, “The Government has noted the announcement by the US Government to discontinue the Significant Reduction Exemption to all purchasers of crude oil from Iran. We are adequately prepared to deal with the impact of this decision.
“The Government will continue to work with partner nations, including with the US, to find all possible ways to protect India’s energy and economic security interests.”
Impact on CAD, inflation
Meanwhile, according to an agency report, Care Ratings has warned that a possible increase in fuel prices can have an adverse impact on the current account deficit (CAD), the rupee and inflation.
The country meets a tenth of its crude demand from Iran — making it the third largest customer for the Persian country — and the “immediate challenge” is to find alternative suppliers who will be able to deliver it at competitive prices as Tehran offers after May 2,the agency said.