- Putting India's interests first, Sitharaman said that India imports 80 per cent of its oil and New Delhi may have to spend more if OPEC continues to increase oil prices.
According to The Times Network article published on April 17, 2023, Finance Minister Nirmala Sitharaman has hinted that despite the diplomatic pressure from the West, India may even surpass the G7 cap on Russian oil imports if OPEC continues to increase costs. Putting India's interests first, Sitharaman said that India imports 80 per cent of its oil and New Delhi may have to spend more if OPEC continues to increase oil prices.
“I’ll end up paying far more than what I can afford. We have a large population and we also, therefore, have to look at prices which are going to be affordable for us," Sitharaman told the news agency Bloomberg.
“For us, it is a very critical input for the economy," she said, adding that India imports 80 per cent of its crude. Throughout the Russia-Ukraine crisis, India has walked the diplomatic tightrope in defending its decision to continue buying oil from Russia. The government has vehemently stressed that the Indian economy with 1.4 billion people, will continue to look for its interest. Sitharaman's statement could be viewed as a departure from the reported stance of Indian officials who had earlier said that New Delhi was unlikely to breach the sanctions on Russian oil imports.
“I think we should look at it more with humanity in mind... I hope the intent is not to hurt economies which have nothing to do with the war,” she added. Earlier this month, OPEC+, which also includes Russia, announced a supply cut sending the oil prices soaring. Last week, OPEC said that oil demand could surge this summer, which may make oil dearer.
