Amid rising chorus for putting a price cap on Russian oil by US and the European Union, India has said that it will examine the proposal, Reuters reported.
Russia President Vladimir Putin has seethed over the West’s plan to put the price cap that will limit Moscow’s crude oil revenue as it seeks to up the ante against Russia.
India, which has benefited from Russian cheap oil, has not taken a decision so far.
However, officials and industry executives have urged not to join the price cap proposal as it would hurt India’s interest.
Russia is today the second-largest supplier of oil to India, making up around 20% of the country’s crude imports, up from barely 1% before the war.
“Russia has threatened to cut supplies to countries that participate in the price cap plan. So, it makes no sense for us to infuriate Russia and risk our steady flow of cheap oil from there,” said an official. “The price cap, however, could become the key reference in our purchase negotiations for Russian oil and benefit us in securing cheaper deals.”
The recent decision by OPEC+ to limit production has also angered the US as the oil cartel is planning to protect its revenue in the face of slowing demand due to recession in advanced economies.
The US has said that the decision will benefit Putin and this has led to souring of ties between Washington and Riyadh.
