Athira Sethu
Kochi, 6 March 2026
The shares of the major oil firms of India, including Reliance Industries, Bharat Petroleum, Hindustan Petroleum, Indian Oil, and Oil India, are under the focus after the US decision to allow India to buy Russian oil for 30 more days.
The US Treasury Department said that the temporary measure would allow the Indian refiners to buy Russian oil that is already at sea. US Treasury Secretary Scott Bessent said that the decision is temporary, and Russia would not gain much from this. However, the main idea behind the decision is to ensure the flow of oil into the market.
Bessent said that India is an important partner for the US. He said that the country is expected to buy more US oil in the near future. He said that the decision is a temporary measure to ease the pressure due to the tensions in Iran.
Earlier, US President Donald Trump had imposed a 25% extra duty on India because it was buying oil from Russia. The US government claimed that it was helping Russia fund its war in Ukraine. However, last month, the US and India signed a deal on trade. Trump has removed the tariffs, stating that India has promised to cut imports of Russian energy products and buy more products from America.
Oil prices rose to more than $85 a barrel on Thursday amid a crisis in West Asia. The Strait of Hormuz, a major oil shipping route, has seen a huge decline in trading activities, about 90%, since the outbreak of the conflict last Friday. According to experts, oil prices could rise to $100 a barrel if the conflict persists for a few more weeks.
The US Treasury has stated that the new license only permits this purchase of Russian oil within the next 30 days. It does not permit any other transaction that is prohibited, including anything involving Iran or Iranian goods.
According to early estimates, the oil reserves in India are sufficient for about 9 to 10 days, including special petroleum reserves and commercial oil stocks. On the whole, the oil reserves in India are sufficient for about 6 to 8 weeks if needed.
This decision is of significant importance for India as well as the oil market of the world. This decision will help India get oil supplies without having to pay extra tariffs, and it will also ensure the oil market of the world gets oil supplies despite the tensions prevailing in West Asia. This decision will also be of significant importance for the investors, who will be interested to see how this decision affects the oil companies of India and their stocks.
