US Imposes 25% Additional Tariff on India, But Modi Government Clarifies Oil Purchases from Russia Will Continue. Oil Refineries are Monitoring the Supply Chain and National Interest is the Priority.
Trump Tariff: Trade tensions between India and the United States have intensified. The US administration has imposed a 25% additional tariff on India. This tariff has been levied in response to India's continued oil purchases from Russia. US officials view this as a condition related to buying oil from Russia.
India's Clear Message: Nation First, Trade Later
Indian officials state that the government is not prepared to succumb to American pressure. Oil refinery companies have received no orders to stop buying oil from Russia. Officials have clarified that India's priority is national interest and energy security.
Position of Oil Companies
Indian oil refinery companies say they will continue to buy crude oil from Russia. Although orders decreased slightly in September, this was not due to the US tariff but because Russia reduced its discounts. Last year, Russian crude oil was available at a discount of $2.5 to $3 per barrel, but now this discount has reduced to $1.5 to $1.7 per barrel.
Likelihood of Increased Orders in October
Officials believe that orders may increase again from October. Russia is preparing to increase discounts on oil again. This means that India will likely continue to have access to crude oil. Experts connected to the oil industry say that if India wants, it can also buy oil from other countries, but doing so would be seen as succumbing to US pressure.
Impact on the Supply Chain
Experts say that if India stops buying oil from Russia, it will not have a major impact on the global oil market. Russia will supply its oil to other countries, and India will source oil from other suppliers. There will only be a slight change in the supply chain. Currently, Indian refineries are monitoring the situation, and the main focus is on ensuring a sufficient and consistent supply of oil.
Oil Industry and National Security
This step by the government clarifies that India's priority is energy security and national interest. If at any time, foreign pressure leads to changes in oil purchases, it will only be for strategic reasons. Officials say that the country's economic and energy security should not be threatened.
The United States imposed tariffs on India because it continued to buy oil from Russia. Although this tariff may be expensive for Indian companies, the government has made it clear that this decision will not be against the national interest. Trade talks between the US and India are still ongoing.
Preparation of Indian Refineries
Indian refineries are currently continuously monitoring the oil supply and stock situation. The company's main objective is to ensure that the shortage of oil does not affect production or domestic needs. For this, they are maintaining a balance in the purchase of oil from Russia and other sources.
