Tariffs may impact oil supplies, lift global prices

Hiked US tariffs and threats of penalties for energy and defence purchases from Russia, may crimp oil supplies to India while increasing its import bill, said sector experts.

- Rituraj Baruah & Gireesh Chandra Prasad

Russian oil makes up 36% of India’s total oil imports. A person in the know of the development said that although India has a diversified oil import basket, an immediate shift in import sources would be tough and supplies may be disrupted in the near-term.

An increase in oil prices as a result of sanctions on Russia may also increase India’s oil import bill given India imports more than 88% of its domestic oil requirement.