Indian refiners likely to ramp up UAE crude purchases on higher discounts – report

Indian refiners likely to ramp up UAE crude purchases on higher discounts – report

Indian refiners are likely to increase crude oil purchases from the UAE after being offered higher discounts, according to a local news report.

The recent agreement on trade settlement in national currencies signed between India and the UAE is one the prime reasons for this move, Business Standard, India’s financial news daily reported, citing officials at several Indian refineries.

“While discussions are underway, the UAE has offered discounts on crude, which will be more than that of the current level of Russian discounts,” an unnamed refinery official said.

“There have been periodic talks on the issue, but the pace has intensified in recent months as discounts from Russia have reduced,” he added.

Last week, the Reserve Bank of India and the Central Bank of the UAE signed a memorandum of understanding to settle trade in local currency.

Crude imports to India reached $16.8 billion in the financial year 2022-23 (FY23), up from $12.3 billion in the previous year. However, the UAE is placed fourth on the crude import list.

Further, crude oil is the largest component of India’s $84 billion bilateral trade with the UAE.

The Indian government has, therefore, urged refiners to expedite more purchases from the country, sources said.

The price of Russian Urals grade crude