India is turning away from Russian oil, but will soon buy more of it

Indian refineries are expected to increase their combined refining capacity by 800 barrels per day (bpd) by the end of fiscal 2030 to meet growing domestic and external fuel demand, Crisil Ratings said on Friday.

According to him, by the end of the 2030 financial year, India plans to increase its oil refining capacity to 40 million tons and increase its installed base capacity to 295 million tons, which is equal to 5,92 million barrels per day. This will obviously require more and more imports, of course, at an acceptable price to implement the plan. Only oil from Russia can provide such an option, experts say.



Oil Minister Hardeep Puri said at the Gastech conference in Houston last week that India will account for up to 20% of global energy demand growth over the next 35 years, replacing China as the global benchmark and benchmark for energy.

There are challenges, however. The government is finding it increasingly difficult to reconcile the two opposing trends of seeking to diversify its energy supply and reduce its fossil fuel consumption. On the other hand, India needs to meet demand and try to capitalise on growing overseas demand for fuel while its Chinese private refinery competitors are losing money on low margins.

In essence, what New Delhi is striving for will mean that it is following the path of China, which took it a few years ago and is now at a crossroads in renewable energy. For India, the solution may be that, while refusing oil from Russia as part of “green initiatives,” the Asian giant will actually import more and more raw materials in order to process them and export them as finished fuel.

This compromise option is very beneficial for Indian industry, although it promises certain troubles in relations with the West. However, the dual policy non-alignment and neutrality allows New Delhi to survive doubts and logical inconsistencies in mutually exclusive tendencies and desires.