Russia has announced a strategic decision to suspend petrol exports from April 1 to July 31 to stabilize its domestic market. Deputy Prime Minister Alexander Novak directed the Energy Ministry to draft the proposal, citing the need to maintain internal supply and control rising prices amid global energy volatility.
This instability is largely attributed to the ongoing conflict between Israel and Iran in the Middle East, which has pushed global crude oil prices above $100 per barrel. Russia, which typically exports between 120,000 and 170,000 barrels of petrol daily, expects this move to impact major buyers including China, Turkey, Brazil, Singapore, and various African nations.
While the global supply chain faces pressure, India’s direct impact is expected to be minimal since it primarily imports crude oil rather than finished petrol. India currently sources about 20% of its crude from Russia and utilizes its massive refining capacity—roughly 5.6 million barrels per day—to meet domestic demand.
However, the broader market consequences remain a concern; as supply tightens, the cost of crude oil could climb further. To secure its energy needs, India has reportedly contracted to purchase nearly 60 million barrels of Russian crude for April, though the previous “war discounts” have diminished, with India now paying a premium of $5 to $15 per barrel due to high demand and logistics challenges.
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