By Mahi Jain
A global fight over Russian oil may sound like a distant diplomatic issue, but it could potentially
reach the everyday expenses of Indians. The US House of Representatives has passed a bill, granting President Donald Trump the power to impose tariffs up to 100% on countries that continue to buy Russian crude products. India is among the major buyers of Russian crude oil.
The issue matters largely because the purchase of oil does not stop at petrol pumps, rather it is also used for transportation, to move food, packages, raw materials, and almost everything that requires commuting or logistics. If replacing Russian oil becomes more expensive, such higher costs can move through the supply chain.
India has strongly defended its right to secure energy for its 1.4 billion people and has warned
that the move could potentially affect long-term India-US relations and global energy markets. Indian refiners have also warned that due to limited crude alternatives in the current global
market, replacing Russian crude is not going to be an easy decision. For consumers, the effect might not show up right away or in the same way for every product. A lot depends on crude oil prices, how much alternative supplies cost, the rupee-dollar exchange rate and how much of any extra cost gets absorbed by refiners, transport firms and businesses. When fuel prices go up freight costs can rise too.
That can slow down the movement of farm goods, manufactured items and e-commerce
deliveries. Airlines and other industries that use a lot of fuel may also face higher operating expenses. So the final result if there is one, could be very different across sectors and regions. It won’t necessarily look like a widespread increase in household spending. The question for India is no longer simply where it buys oil, rather, it is how much a nation has to pay to maintain both its energy requirements and its relationship in the global landscape.
