Following a landmark trade deal with the US, India is set to slash its imports of discounted Russian crude oil by nearly 50%. While this sparked fears of a hike in domestic petrol and diesel prices, the government has stepped in to clear the air. Here is the 5-point breakdown of the current situation:

1. The 50% Slash in Russian Imports: Post-US trade agreement, India’s daily import of 1.2 million barrels of Russian oil (as of January) is expected to drop to 400,000–500,000 barrels by April. Public sector refiners have already halted fresh “spot cargo” orders.

2. The US Trade Leverage: The US has completely removed the 25% additional tariff on Indian goods in exchange for India reducing its reliance on Russian energy. Experts suggest the overall economic gain from this trade deal far outweighs the benefits of discounted Russian oil.

3. Diversification of Sources: Foreign Secretary Vikram Misri emphasized that India’s energy policy is driven by “National Interest.” India will continue to diversify its import sources to ensure that a reduction from one country (Russia) doesn’t shock the domestic market.

4. Strategic Reserves to the Rescue: Petroleum Minister Hardeep Singh Puri informed the Rajya Sabha that India’s Strategic Petroleum Reserves (ISPRL) can sustain the nation for 74 days in case of a global supply disruption. Currently, reserves are at 77% capacity.

5. Impact on Retail Prices: The Ministry of External Affairs and the Petroleum Ministry have assured that protecting consumer interests is their “top priority.” Since India is diversifying its suppliers and benefiting from the US trade deal, fuel prices are not expected to rise solely due to the Russian import cut.