Historic! In a first, India pays in rupees for crude oil purchased from UAE
26 Dec 2023 15:26:21
New Delhi, Dec 26: In a historic development, India has executed its first-ever payment in rupees for crude oil acquired from the UAE, marking a significant step in its efforts to promote the Indian currency.
With over 85 percent of its oil requirements met through imports, India has strategically pursued a three-pronged approach. This strategy involves sourcing oil from the most cost-effective suppliers, diversifying its supplier base, and complying with international obligations, such as price caps in the case of Russian oil.
India's strategic move to diversify its oil sources paid off during the aftermath of the Ukraine war when it increased imports of Russian oil, which some in the West had shunned. By maintaining flexibility in its oil sourcing, India saved billions of dollars while ensuring a stable energy supply.
In A First, India Pays In Rupees For Crude Oil Purchased From UAE.
— Megh Updates 🚨™ (@MeghUpdates) December 26, 2023
India in July signed an agreement with the UAE for rupee settlement and soon after Indian Oil Corporation (IOC) made payments for purchase of a million barrels of crude oil from Abu Dhabi National Oil Company… pic.twitter.com/pZ54DIkxOB
The Indian Oil Corporation (IOC) played a pivotal role in this shift by making payments for the purchase of a million barrels of crude oil from the Abu Dhabi National Oil Company (Adnoc) in Indian rupees.
This milestone not only strengthens economic ties between India and the UAE but also sets a precedent for future transactions in local currencies. Some of the Russian oil imports too have been settled in rupee. More such deals may happen in future, reports suggest.