Oil strategy guided by national interest: Foreign secretary Vikram Misri

NEW DELHI: The government on Monday said that India's oil sourcing strategy will be guided by national interest and it will not depend on any single country for its needs, while highlighting that actual purchases are done by petroleum companies, with decisions dependent on market conditions, availability, pricing and risk assessment.

The comments by foreign secretary Vikram Misri came three days after US President Donald Trump's executive order lifting the 25% penal tariff on India said the country had committed to stop purchasing Russian oil, either directly or indirectly. Amid the suspense over India's position on already-declining Russian oil imports, Misri said oil companies, public or private, will continue to make business choices driven by the considerations he outlined - a complex matrix of issues, including the important financial and logistical aspects.




His response followed repeated remarks by commerce & industry minister Piyush Goyal that only the foreign ministry could comment on whether India gave any such commitment to the US while arriving at the framework for an interim trade agreement, and accusations by opposition that govt was evading the question.


Indian cos assess oil availability, risks and costs, says Misri

Misri said, “What I can firmly and confidently say is that whether it is govt or indeed our business, at the end of the day, national interests will be the guiding factor for us in our choices.” He was replying to a question on the issue at a media briefing on the visit of Seychelles President Patrick Herminie.

In Dec, India’s crude imports from Russia fell to a 10-month low of $2.7 billion, down 15% from Dec 2024, while Saudi Arabia (60% rise to $1.8 billion) and the US (31% increase to $569 million) were the big gainers. Russia, however, remained the largest source, accounting for 31% of imports during April-Dec 2025, as against a little under 37.5% a year ago, commerce department data showed. During this period, the US’s share has jumped from 4.5% to 7.8%.

“They (oil companies) assess availability at any given point in time, and they assess risks, costs in this process. And obviously, all of these companies also have their own internal accountability-related processes to look at and certain fiduciary responsibilities in the market,” said Misri. He added that govt’s foremost priority is to safeguard the interests of Indian consumers and ensure they receive adequate energy at the right price and through reliable and secure supplies.

Misri also said India seeks to maintain multiple sources of supply and diversify them as appropriate to ensure stability. “I would say that the more diversified we are in this area, the more secure we are,” said Misri. India and many other countries share a common interest in ensuring stable prices and secure supplies at a time when global uncertainties are impacting the stability of energy markets, he said.

He noted India was not just one of the largest consumers of energy but also helped stabilise global energy markets. “That’s one reason 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 nations. We are neither dependent on any single source for this, nor do we intend to be.”
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