New Delhi: India may start buying more crude oil from Venezuela as the United States pushes New Delhi to reduce its dependence on Russian oil, according to recent reports and officials familiar with the talks.
The move is linked to ongoing trade and tariff discussions between India and the US. Washington has imposed tariffs of up to 25 percent on some Indian goods, partly in response to Indiaâs large purchases of discounted Russian crude. The US has now suggested that India could diversify its oil sources and look at Venezuela as an alternative supplier.
Indiaâs imports of Russian oil have already started to decline in recent weeks. From levels above one million barrels a day last year, purchases are expected to fall further in the coming months. Indian refineries are gradually shifting to supplies from the Middle East, Africa and potentially South America.
Venezuela holds some of the worldâs largest oil reserves and has recently allowed more private companies to operate in its energy sector. This has made its crude more accessible to foreign buyers, including Asian countries. Indian refiners had bought Venezuelan oil in the past but reduced purchases due to sanctions and policy restrictions.
US officials have indicated that if India continues to cut its Russian oil imports, there could be room for easing or removing the tariffs imposed on Indian exports. This has added urgency to discussions on alternative oil supplies.
Despite the change in suppliers, Indiaâs overall oil imports remain strong as fuel demand continues to grow with economic activity. Officials say the governmentâs main aim is to secure stable and affordable energy while managing trade relations with major partners.
If India resumes large scale purchases from Venezuela, it would mark a significant shift in its oil sourcing strategy and could help ease trade tensions with the United States while reducing its exposure to Russian crude.