(FE)
Petroleum minister Dharmendra Pradhan discussed volatility in crude oil prices and its impact on Indian consumers with US energy secretary Rick Perry. The telephone conversation came in the backdrop of tightening US sanctions on Iran, and production curbs by the Organization of the Petroleum Exporting Countries (Opec). India had kept its option open to buy oil from Iran, with former foreign minister Sushma Swaraj informing her visiting Iranian counterpart, Javad Zarif, in May that New Delhi will take a decision after the national elections, which concluded last month.
India was among Iran’s top oil buyers with imports of 23.5 million tonnes in 2018-19. However, with the US’s conditional waiver for Iranian oil imports to eight countries, including China and India, expiring on 2 May, India has stopped all oil imports from the Persian Gulf nation. While sourcing crude from other suppliers is not an issue, the price at which it is bought will impact the Indian economy.
