India is being sought by the G7 countries to help enforce a cap on Russian oil prices. Moscow appears to be moving in the right direction.
According to The Business Standard, Russia is willing to give India even lower prices for oil.
The G7 proposal should not be supported by India. The newspaper quoted a foreign ministry official as saying that a decision on this issue would be taken later.
The G7 consists of Canada, France, Germany, Italy, Japan, and the US. They want to stop Russia from making money from its crude oil revenue.
Russia became India's second largest crude oil supplier. 85% of India's oil needs are met by imports.
Russia's share in India's oil imports increased from 1% in February to 18% in June. Russia's oil prices plummeted as many countries stopped trading with it.
Russian supplies were cheaper than the average Indian crude oil price in May. Russia has been reducing the price of oil it sells to India.
Iraq was forced to reduce its rate to $9 lower than a Russian oil barrel. Russian crude oil cost less than India's average barrel of imported crude oil in August.
India has been looking for an alternative crude oil supply source.
The G7 wants to impose price caps on Russian oil. The European Union will ban Russian oil products on February 5, 2023.
Before making a decision, India will consider all aspects.
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