India distances itself from direct fuel sales to Russia

India's Petroleum and Natural Gas Minister Hardeep Singh Puri has said Indian companies are not directly selling refined fuel to Russia, following reports that Moscow has begun importing gasoline from India to address domestic fuel shortages, The Economic Times reports.

"Indian companies are not selling fuels to Russia," Puri said. "Possible that Indian-origin refined fuel is sold to Russia via traders."

The clarification came after Reuters reported that Russia had started seaborne imports of gasoline from India to help ease a growing supply deficit.

Industry sources said that at least 60,000 metric tons of gasoline have already been shipped from India. Another source said two tankers carrying between 30,000 and 40,000 tons each had been dispatched.

Russia has been grappling with fuel shortages across its 11 time zones, resulting in rationing, long queues at filling stations, and record-high gasoline prices. Earlier this week, the Kremlin said it was in contact with several countries to secure fuel imports at acceptable prices.

According to a third industry source, Russia plans to import around 400,000 tons of gasoline each month from multiple countries, including neighboring Belarus, which is already supplying fuel. Russia's summer gasoline demand exceeds 110,000 tons per day during the peak consumption season.

Speaking separately, Puri said India's state-run oil marketing companies (OMCs) had incurred losses of 74,781 crore rupees by selling petrol, diesel, and liquefied petroleum gas below cost through June 30, as global crude oil prices surged during the West Asia conflict.

He noted that although international crude prices have eased in recent weeks, refiners are still processing crude purchased when prices were significantly higher.

Since oil companies typically procure crude about two months in advance, the fuel currently being refined is largely sourced from cargoes purchased in April and early May, when benchmark crude prices had spiked.

Asked about the possibility of reducing petrol and diesel prices, Puri said any decision would depend on whether international crude prices remain at lower levels over the coming weeks.

By Vafa Guliyeva