Team Blitz India
NEW DELHI: India made its first-ever payment in rupees for crude oil purchased from the UAE, which is helping the world’s third largest energy consumer push for taking the local currency global, officials said.
With the nation more than 85 per cent dependent on imports for meeting its oil needs, India has been pursuing a three-pronged strategy of buying from the cheapest available source, diversifying sources of supply and not breaching any international obligation like the price cap in case of Russian oil.
While the strategy helped save billions of dollars, when it ramped up imports of Russian oil that was shunned by some in West post Ukraine war, it is looking to settle trade in rupees instead of dollars in a bid to cut transaction costs by eliminating dollar conversions.
Earlier, in July India had signed an agreement with the UAE for rupee settlement and soon after IOC made payments for purchase of a million barrels of crude oil from Abu Dhabi National Oil Company in Indian rupees.
