India remains Russia’s second-largest fossil fuel buyer; govt reassures on energy supplies

India remained the world's second-largest buyer of Russian fossil fuels in May, importing an estimated €5.8 billion ($6.7 billion) worth of Russian hydrocarbons as refiners increased purchases from Moscow, according to a report by the Centre for Research on Energy and Clean Air (CREA).

Crude oil accounted for about 83% of India's imports from Russia during the month, valued at €4.8 billion, while oil products and coal imports stood at €550 million and €429 million, respectively.

"India's total crude import volumes recorded an 8% month-on-month increase in May. This is partially explained by a 21% month-on-month increase in Russian imports," CREA said.

Russian crude arrivals increased at several refining hubs, including Vadinar, Jamnagar, New Mangalore, Visakhapatnam and Paradip.

According to CREA, China bought 50% of Russia's crude exports in May, followed by India (36%), Turkiye (6%), and the EU (5%).

The report also said refineries using Russian crude in India, Turkiye, Brunei and Georgia exported €641 million worth of oil products to sanctioning countries in May.

Exports to the US originated at Reliance Industries' Jamnagar refinery, among others. "In the prior three months, 39% of the STAR refinery's crude oil feedstock and 15% of the Jamnagar refinery's feedstock came from Russia," CREA said.

India has over 60 days of crude and gas stocks: Puri

Union Petroleum and Natural Gas Minister Hardeep Singh Puri said there is no shortage of energy in the country and that supplies of crude oil, LPG and natural gas remain comfortable.

"We have a stock of crude oil for over 60 days, we have natural gas stock for over 60 days," Puri told reporters in Ludhiana.

Puri also said fuel prices in India had declined between May 2022 and May 2026 despite increases in several countries. Sharing data of fuel prices, Puri said petrol prices in Pakistan rose by 70%, Sri Lanka by 66%, France by 47%, Italy 46%, Bangladesh 36% and the US 35%.

"In India between May 2022 and May 2026, prices dropped by 3.1%. On one hand, prices rose by 70-80% in the world, but here (Prime Minister Narendra) Modi ji reduced prices by 3.1%" he said.

On LPG supplies, he said, "We have a maximum stock of LPG which is 75-80 days of stock." On E85 fuel (85% ethanol blended petrol), he said at present, there are 47 E85 fuel pumps in the NCR. By December 2026, the strength of pumps would go up to 500 and by December 2027, it would further increase to 5,000 pumps, he said.

Farmers will continue to get urea and DAP at affordable rates: Chouhan

Union Agriculture Minister Shivraj Singh Chouhan said sufficient fertiliser stocks were available in the country and assured continued subsidy support despite concerns over supplies amid the West Asia crisis. "Our government has decided that farmers will continue to get urea and DAP at affordable rates. The government is bearing the burden of increased prices," Chouhan said.

"This will put an additional burden of thousands of crores of rupees on the exchequer, but we are prepared to bear it in the interest of farmers," he added.

"Our government is making every possible effort to ensure sufficient fertiliser availability for rabi crops as well. I am confident that we will succeed in these efforts under all circumstances," he added.

On El Nino, Chouhan said, "El Nino will have an impact on India as well as other countries, but we have made adequate preparations. We will also cooperate with other nations through exchange of information and best practices."