If India stops buying Russian oil, prices could rise as demand from other sources increases amid limited global supply, and refinery capacity will also need to be monitored.

Stopping oil purchases from Russia could increase prices.

If India completely stops buying crude oil from Russia, it will not only impact India's energy needs but could also impact oil prices. Finance Minister Nirmala Sitharaman has stated that global oil supplies are currently limited. Therefore, stopping oil purchases from Russia would require more crude oil from other countries, which could lead to higher prices.

In fact, India meets a large portion of its crude oil needs by purchasing it from other countries. Therefore, if oil supplies from Russia decrease, India may have to purchase more oil from other countries to meet its needs. This could increase demand for oil in the global market and put pressure on crude oil prices to rise.

What will happen if we stop buying oil from Russia?

• If the purchase of oil from Russia suddenly stops, India will have to buy more crude oil from other countries.
• Due to increase in demand for oil, the price of crude oil supplied in the global market may also increase.
• Expensive crude oil may increase the cost of other petroleum products, including petrol and diesel.

Given India's large population and energy needs, oil supplies may need to be sourced from multiple countries. Therefore, the government will need to consider not only the availability of oil, but also its price and the processing capacity of Indian refineries.

Challenge for Indian refineries too

According to Sitharaman, simply obtaining oil from another country is not enough. It's also crucial that the crude oil sourced from there is suitable for Indian refineries, as the refining methods for each type of crude oil differ. Therefore, a sudden halt in oil supplies from Russia could pose significant challenges for Indian refineries.