MOSCOW (Reuters) – Indian private oil companies made huge profits when some countries imposed sanctions on Russian oil in retaliation for their invasion of Ukraine. Private companies make a profit by buying crude oil from Russia, refining it and exporting it to Europe and elsewhere.
With 100 days to go before the Ukraine occupation, most European countries still do not buy oil directly from Russia. Private oil companies in foreign countries have to be relied upon as other means to ensure the availability of fuel there. According to a Reuters report, this has become an opportunity for Indian companies like Reliance and Naira to reap big harvests.
These companies make a profit of up to $ 30 (Rs. 2325) per barrel of oil. With the increase in exports, the price of oil sold at the pumps named after these companies in India has also gone up. Domestic sales have been declining due to higher prices than government-owned pumps. The share of private companies has come down to seven per cent from 10 per cent last year. Indications are that this is conscious as exports are high. Company sources also confirm the price hike.
It is also noteworthy that the government-controlled companies in the country do not rely too much on Russian oil because of the long-term contract. Since the invasion of Ukraine on February 24, India has received 6.2 million barrels of crude oil. Three times more than the same period last year. Oil exports from India also increased by 15 per cent.
According to the report, the world’s largest oil refinery at Jamnagar in Gujarat has been postponed due to Reliance’s annual refurbishment due to poor refining.