Cost-effectiveness is the driving force behind India’s oil import strategy, which bases purchases on supplier discounts. India balances consumer interests and climate goals while ensuring energy affordability. Hardeep Singh Puri, the Minister of Petroleum and Natural Gas, stressed that India will keep purchasing from the most affordable supplier.”Our entire oil/energy import policy is based on discounts. If I am getting cheaper crude (from a country), why would I buy from an expensive source? They would compete among themselves.” Puri declared, “We will float the tender and buy from the cheapest source.”

With an import dependency of more than 85%, India currently imports almost 5 million barrels of crude oil daily. By contrast, China and the United States utilize about 12 million and 20 million barrels daily, respectively.

India Balances Consumer Interests and Climate Goals

According to Puri’s comments, India has already bought $20 billion worth of crude oil from the United States, and further increases in offtake are contingent on commercial deals. Global energy dynamics have changed due to Russia shifting its crude exports to Asia and the United States pledging to increase its oil and gas production.

Middle Eastern nations like Saudi Arabia and Iraq are among India’s traditional suppliers, but Russia has become the country’s largest source of crude oil, accounting for over 30% of total imports, up from only 0.2% before the 2022 conflict in Ukraine. However, supply availability has been temporarily affected by new U.S. sanctions imposed in 2025 on Russian vessels and oil producers. In response to these developments, Puri said India would continue to adhere to international restrictions while negotiating the best possible terms.

Former U.S. President Donald Trump expressed interest in becoming the United States’ top oil supplier during a meeting with Prime Minister Narendra Modi on February 14 to discuss deepening energy ties. While acknowledging that the ultimate choice would rely on ongoing commercial negotiations, Puri alluded to a possible increase in U.S. energy imports.

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Balancing Energy Security with Climate Goals

India, the world’s third-largest crude consumer and fourth-largest refiner, is using its market position to negotiate changing trade and geopolitical conditions. Puri underlined that India is dedicated to its sustainability objectives, even if obtaining reasonably priced energy is still a top priority.

“In a democracy like India, where we have elections at various levels, the last thing we want is for energy prices to spike due to rushed policies or ill-judged tokenism,” he stated. With 1.4 billion people living in India, many of whom have modest incomes, energy affordability is more needed than luxury.

India is still the only G20 country that has fulfilled its obligations under the Paris Agreement despite its reliance on fossil fuels. The nation’s long-term sustainability plan includes investigating green hydrogen and increasing its solar and wind energy capability. Puri also emphasized how the government has successfully lowered energy costs over the last three years by lowering excise taxes.

India’s changing energy strategy demonstrates its twin commitment to achieving global climate goals and guaranteeing affordable energy availability.

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