India named the retention of oil prices as its merit

Indian Oil Minister Hardeep Singh Puri, speaking at the World Economic Forum in Davos, said that the cost of a barrel of oil could exceed $200 if India were less pragmatic and chose suppliers of raw materials taking into account geopolitical conflicts. 

The Minister stressed that India is the third largest consumer of oil in the world and plays a key role in the global hydrocarbon market. In January-October 2023, the country imported 201.293 million tons of oil (+10.2%). The three main counterparty countries since June 2022 include Russia, Iraq and Saudi Arabia.

Today, India is facing rapid growth in energy consumption, which is three times faster than the global average. In the next 20 years, India's share of energy consumption may reach 25% of the global level. In addition, India imports about 85% of oil, so it is important to ensure the availability and sustainability of raw material supplies.

The Minister also noted that the country had opted for pragmatic solutions by purchasing oil at a discount to the market, which helped prevent a significant increase in oil prices. The importance of choosing oil suppliers, taking into account the geopolitical situation, is becoming increasingly relevant in the context of instability in the global energy markets.