Russia is selling oil at discounted prices to India | All you need to know

Russia is offering a discount of $35 a barrel to price levels prior to the start of the Ukraine crisis in February, according to a Reuters report.

Russia is selling crude oil at discounted prices to India at a time when oil marketing companies have started increasing petrol and diesel rates across the country. Meanwhile, the government was closely monitoring global energy markets situation in the backdrop of evolving geopolitical events, Minister of State for Petroleum and Natural Gas Rameswar Teli said.

Teli has said that if required, the government would release the strategic petroleum reserve (SPR) to mitigate market volatility and calm the rise in crude oil prices.

While OMCs paused retail price revision during the period when international oil prices spiked to a 14-year high of USD 139, petrol and diesel prices have been revised 9 times since March 22, totalling a hike of Rs 6.4 per litre till Friday.

While OMCs have snapped distressed Russian oil being offered at a deep discount post-Ukraine war, Minister of State for Petroleum and Natural Gas Rameswar Teli said: "less than 1 per cent of total crude oil (is) being imported from Russia in the year 2021-22 (till January)."

"Import of crude oil is carried out by Indian oil and refining companies in the public and private sector from diverse sources, including from sources in Russia, through business-to-business arrangements, based on techno-commercial considerations and domestic requirements," the Minister said.

Brent crude futures slid to $104.63 a barrel on Friday. The US West Texas Intermediate (WTI) crude futures fell to $99.89 a barrel, according to the Reuters report.

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