America allowed to buy cheap oil from Russia until April 3
The crisis of petrol and diesel prices rising due to Russian crude imports has been averted for now.
9.5 million barrels of oil tankers waiting at sea will now come to India
Crude crosses $83 due to Middle East war, India will get big support from 'discount' oil
Helped India by giving 'special license' to reduce Iranian pressure
Only Russian oil cargo loaded till March 5 will be allowed to enter India.
At a time when the world is facing an energy crisis due to the fierce war in West Asia and the blockade of the 'Strait of Hormuz', big news of relief has come to light for India. Amid fears of a rise in petrol and diesel prices in India, the US has granted India a special license to buy cheap crude oil from Russia till April 3, 2026. This decision has given a big boost to the Indian economy.
Trump administration's soft approach towards India
US Treasury Secretary Scott Besant announced on social media platform 'X' on Friday that India has been given this 30-day special exemption under President Trump's energy agenda. Describing India as an 'essential partner' of the US, he said that this 'stop-gap' arrangement has been made to reduce the pressure of Iran trying to hold the global energy market hostage. The US expects that after this exemption, India will increase its purchases of US oil in the coming time.
9.5 million barrels of oil trapped in the sea cleared
The biggest benefit of this license issued by the US Treasury Department's 'OFAC' will be that Russian oil ships, which were in 'waiting mode' in Asian waters due to sanctions, will now be able to reach India. Approximately 9.5 million barrels of Russian crude oil are currently stranded at sea. Ships that were loaded till March 5 will now be able to deliver to Indian ports by April 3. This will not bring any new economic benefits to Russia, but India will get cheap oil on time.
Oil prices surge in global market
The war in the Middle East has led to a sharp rise in crude oil prices. The military action against Iran and the attacks on major refineries like Saudi Aramco have pushed Brent crude prices in the global market to above $83.07 per barrel. In such a situation, if India does not get oil from Russia at a discounted price, the inflation rate in the country could skyrocket.
Why is Russian oil a game-changer for India?
India imports 88% of its crude oil requirements. Russia provides India with oil at cheaper prices than benchmark prices, which is essential for India's energy security. Russian imports fell to 1.1 million barrels per day in January, which rose again to 30% in February. Due to availability of cheap oil, the costs of refineries are reduced and fuel prices in the country can be kept stable.
In short, this diplomatic decision by the US has temporarily averted the burden on the pockets of Indian consumers and has given the government an extra month to manage the supply chain.
