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What will be price of petrol, diesel if India stops importing oil from Russia
In a significant update amid the trade talks between India and the US and Donald Trump imposing an additional 25% tariff on India, taking the total tariff to 50% due to India’s continued crude oil purchase from Russia, reports are now talking about the inflationary impact if India stops buying oil from Russia. Notably, Russia become India’s largest oil supplier since the Russia-Ukraine war and is currently supplying 35% to 40% of India’s oil needs.
Why Donald Trump imposed tariffs on India?
In a massive action against India, the United States, under the leadership of Donald Trump imposed tariffs on India as India continued to purchase crude oil from Russia. In response to the move, India clarified its stand and said that it buys Russian oil because Europe stopped sourcing from Moscow.
How much loss will India face if Russia cuts imports?
As per experts, if India cuts Russian import of crude oil to India, India will have to rely more on costlier oil from West Asia, Africa, the US, and Latin America, which will pose technical, economic, and strategic challenges. More notably, the shifting could raise annual costs by Rs 250 – 400 billion for Indian refiners, which would ultimately hit the budgets of Indian consumers.
Earlier, a SBI report has also indicated that the fuel bill might increase by USD 9 billion in FY26 and USD 11.7 billion in FY27 if Russia cuts its crude oil imports to India. However, the exact price in increase of Petrol and diesel cannot be predicted as it depends on several others factors including government taxes.
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