India becomes Europe’s largest supplier of refined oil

According to a new report from Kpler, India has now become the primary provider of refined fuels to Europe. At the same time, India has also set a new record for purchasing Russian crude oil.

This could be attributed to the European ban on Russian oil, indicating that Europe’s dependence on Indian oil products has risen significantly.

According to the information provided, it seems that Europe’s import of refined fuel from India will increase significantly and exceed 360,000 barrels per day. This will put India’s import numbers slightly higher than those of Saudi Arabia.

The European Union faces a dilemma with regards to development. While it needs to find alternative sources of diesel due to its decision to stop direct imports from Russia, which used to be its main supplier, this move could also increase demand for Russian oil and result in higher shipping costs.

Moreover, European oil refiners will face tougher competition as they are unable to obtain inexpensive Russian crude, and there is increased scrutiny regarding the origin of diesel imports to the region.

On a separate note, according to Kpler data cited by ANI, India is expected to receive over 2 million barrels of Russian crude oil per day in April, which accounts for almost 44% of its total oil imports.

In FY23, Russia became a significant provider of oil to India for the first time, as it began offering discounted rates amidst the Ukraine conflict, despite objections from the West regarding India’s imports from Russia during the war.

India’s Position

India has asserted its position by stating that it is exploring all possibilities to ensure its energy security.

In February, Russia emerged as the top exporter of crude oil to India in terms of value, even though the western countries had imposed a price cap of USD 60 per barrel.

The Union Ministry of Commerce and Industry’s data reveals that India imported crude oil worth USD 3.35 billion from Russia, which was higher than the imports from Saudi Arabia and Iraq, which stood at USD 2.30 billion and USD 2.03 billion, respectively.

The purpose of the western price cap was to prevent a sudden surge in global oil prices while limiting Russia’s oil revenues.

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