NEW DELHI: The government on Monday said that India’s oil sourcing strategy is guided by national interest and is not dependent on any single country. It emphasized that actual procurement decisions are taken by petroleum companies based on market conditions, availability, pricing, and risk assessment.
The remarks were made by Foreign Secretary Vikram Misri amid speculation over India’s crude oil imports following an executive order by US President Donald Trump lifting a 25% penal tariff on India. The order claimed that India had committed to stop purchasing Russian oil, either directly or indirectly.
Responding to questions on India’s position, Misri said that both public and private oil companies would continue to make business decisions based on a complex mix of financial, logistical, and commercial considerations.
His comments followed repeated statements by Commerce and Industry Minister Piyush Goyal, who had said that only the foreign ministry could clarify whether any such commitment had been made to the US under the interim trade agreement framework. The opposition had accused the government of evading the issue.
“What I can firmly and confidently say is that, whether it is the government or our businesses, at the end of the day, national interests will be the guiding factor in our choices,” Misri said.
He was responding to a query at a media briefing on the visit of Seychelles President Patrick Herminie.
Import Trends
Official data showed that in December, India’s crude oil imports from Russia fell to a 10-month low of $2.7 billion, a decline of 15% compared to December 2024. During the same period, imports from Saudi Arabia rose by 60% to $1.8 billion, while purchases from the US increased by 31% to $569 million.
Despite the decline, Russia remained India’s largest supplier, accounting for 31% of imports between April and December 2025, compared to nearly 37.5% in the same period a year earlier. The US share rose from 4.5% to 7.8%.
Market-Based Decisions
Misri said oil companies evaluate availability, risks, and costs before making purchases and follow strict internal accountability and fiduciary processes.
“They assess availability at any given point in time, and they assess risks and costs. All these companies also have their own internal systems and responsibilities in the market,” he said.
He added that the government’s top priority is to protect the interests of Indian consumers by ensuring adequate energy supplies at reasonable prices through reliable and secure channels.
Focus on Diversification
The foreign secretary stressed that India remains committed to maintaining multiple sources of energy imports.
“The more diversified we are, the more secure we are,” Misri said, adding that India and many other countries share a common interest in stable prices and dependable supplies amid global uncertainties affecting energy markets.
He noted that India is not only one of the world’s largest energy consumers but also plays a role in stabilizing global markets.
“That is why we import energy from multiple sources. The key drivers of our energy policy are adequate availability, fair pricing, and reliability of supply. We import crude oil from dozens of countries. We are neither dependent on any single source, nor do we intend to be,” he said.
