Need orderly energy transition without ‘vilification’ of fossil fuels, says Hardeep Singh Puri

On its part, India has been advocating for necessary investments in oil and gas projects to ensure that enough production is available to meet global demand in the years to come, while also making efforts to accelerate transition to green energy. As the third-largest consumer of crude oil that depends on imports to meet over 85 per cent of its requirement of the commodity, India is extremely sensitive to volatility in the global oil market. The country has also been advocating for more access to clean energy technologies and climate finance for itself and the Global South at large.

Touching upon the prevailing global energy production and supply situation, Puri said, “…we (need to) have access to traditional fuel and making predictable transition to cleaner fuel. Balanced and realistic dialogue is needed and not vilification of fossil fuel”.

Major crude oil guzzlers like India have been grappling with volatility in the global oil and gas markets in the aftermath of Russia’s February 2022 invasion of Ukraine and coordinated crude oil production regulation by major crude oil producers to shore up prices. According to Puri, steps taken by the government, including “diversification of sources of (oil) imports”, ensured that the retail prices of petrol and diesel in India actually declined at a time when global oil and fuel prices were surging.

India’s public sector oil marketing companies (OMCs) have kept prices of the two automobile fuels unchanged since early April of 2022, even as retail fuel prices in a number of countries surged. While the OMCs have kept prices unchanged, the Centre on two occasions cut retail fuel prices by reducing Central Excise Duty.

Indian refiners have been aggressively scouting for opportunities to buy oil at attractive prices. Their purchases of discounted Russian crude over the past couple of years has made Moscow the largest source of oil for India. As the West began shunning Russian oil due to the war in Ukraine, Russia started offering deep discounts on its oil to willing buyers. Indian refiners started lapping up the discounted barrels. Indian refiners have also resumed the purchase of cheaper Venezuelan crude as the United States (US) eased sanctions on the Latin American nation, and are looking at other sources of crude as well.