Russian Oil Costs India $1.5 Million! Trump's Tariffs and EU Threats Hit India
President Donald Trump shocked global markets again by announcing a 25% import tariff on all goods from India. The reason: India continues to buy crude oil from Russia. This move panicked the Indian oil refining industry, especially since it has been heavily dependent on cheap energy supplies from Moscow for the past few years. India itself imports more than a third of its crude oil from Russia.
Indian Refineries Scramble for New Sources
Several major refineries, such as Indian Oil, Bharat Petroleum, and Reliance Industries, have begun seeking alternative supplies from the Middle East and Africa. But this shift is predicted to increase costs and reduce profit margins. Meanwhile, several companies had already rushed to issue purchase tenders for expedited delivery, even before Trump's official announcement.
Refinery Stock Prices Fall, Uncertainty Increases
The market immediately responded negatively. Shares of major Indian oil companies plummeted: Indian Oil fell 3.2%, Bharat Petroleum 4.1%, Hindustan Petroleum 3.7%, and Reliance Industries fell 2%. Market players and companies are still awaiting clarification from the Indian government regarding this new policy, especially since Trump also mentioned additional "fines" if India continues to buy Russian oil.
India Caught Between Geopolitics and Rising Prices
In addition to pressure from the United States and the European Union, India also faces the challenge of increasingly limited and expensive supplies from Russia. Vandana Hari of Vanda Insights said this situation could persist until August 7th, unless President Putin takes conciliatory action in Ukraine. In the short term, India will be forced to compete for supplies in the global market at higher prices, and the process of adjusting supply lines could take up to six months. (ayu)
Source: Newsmaker.id
