Russian Oil Waiver Ends: Is India Heading for Another Fuel Price Hike?

New Delhi: America has ended the exemption given on oil coming from Russia. Due to this, it will no longer be as easy for India to buy cheap Russian oil as before. On the other hand, there is tension in the Strait of Hormuz due to the ongoing war in Iran. Because of this, oil supply is being affected all over the world.

How much loss will India suffer due to America's decision?

The relaxation given by the Trump government in the ban on Russian marine crude oil has now been abolished. This means that if India now buys oil from Russia, there will be a threat of American sanctions again. In the last two years, India has purchased cheap oil in large quantities from Russia. This helped a lot in controlling inflation in the country. Now this path seems to be closed.

How dependent had India become on Russian oil?

India imports more than 85% of its crude oil requirement from outside. In the month of May, India bought a record 23 lakh barrels of Russian oil daily. For the last several months, almost half of the oil that India was importing was coming from Russia alone. For this reason, now the new restrictions can become a big tension for India.

How will the Hormuz crisis and expensive oil hurt the common man?

If the prices of crude oil continue to rise like this, it will have a direct impact on your pocket. Petrol, diesel, LPG cylinders will be expensive. Prices of air tickets and food items will also increase. Anyway, fuel prices in India have increased by about Rs 3 per liter. In such a situation, inflation may rise again.

What options are left with the government now?

The government currently does not see any easy way out. Either it should reduce taxes, or increase subsidies, or ask the government oil companies to bear the losses. But all these three routes will put a burden on the government's pockets. Experts say that if the situation remains like this for a long time, the government may have to adopt old methods to save oil. Like car pooling, changing office timings or closing petrol pumps on Sundays.