No Effect of Trump’s Tariffs on Indian Refiners’ Russian Oil Import Strategy: Report
In a recent development, it has been reported that the tariffs imposed by US President Donald Trump on India did not have any significant impact on Indian refiners’ strategy to import oil from Russia. The report, published by The Indian Express, cites top officials at India’s public sector refiners as stating that the decision to hike tariffs on India to 50% had no effect on their Russian oil import strategy.
According to the report, there has been a slowdown in the imports of Russian crude oil by Indian refiners, but this is not because of the tariffs imposed by the US. Instead, the slowdown is attributed to the narrowing of discounts on Russian crude oil, which has become a significant factor in the decision-making process of Indian refiners.
The Indian Express report quotes top officials at India’s public sector refiners as stating that the discounts on Russian crude oil have narrowed “considerably” in recent times, making it a less attractive option for Indian refiners. The officials further stated that the tariffs imposed by the US were not a major consideration in their decision-making process.
The tariffs imposed by the US on India were a response to India’s decision to impose retaliatory tariffs on US goods worth $240 million. The tariffs on Indian goods, including steel, aluminum, and farm products, were imposed by the US in June 2018. India retaliated by imposing tariffs on 28 US goods, including almonds, apples, and walnuts.
The Indian Express report notes that India’s crude oil imports from Russia have been increasing steadily over the past few years, and the country is now the second-largest buyer of Russian crude oil after China. In 2020, India imported around 63 million metric tons of crude oil from Russia, accounting for around 10% of the country’s total crude oil imports.
The report also notes that Indian refiners are currently facing a challenging market environment, with global oil prices remaining volatile and domestic demand for oil declining due to the COVID-19 pandemic. In such a scenario, Indian refiners are looking to diversify their crude oil imports and reduce their dependence on Middle Eastern crude oil.
In conclusion, the report suggests that Indian refiners’ strategy to import oil from Russia is not significantly impacted by the tariffs imposed by the US. The slowdown in imports is attributed to the narrowing of discounts on Russian crude oil, which has made it a less attractive option for Indian refiners. With the global oil market remaining volatile and domestic demand for oil declining, Indian refiners are likely to continue diversifying their crude oil imports and reducing their dependence on Middle Eastern crude oil.
Source:
https://indianexpress.com/article/business/donald-trump-tariff-russian-oil-import-10189713/lite/
