India's Oil Imports Primarily Driven by Crude Prices

India's oil imports from countries such as the US and Venezuela are largely determined by prevailing crude prices, according to Arun Kumar Singh, Chairman and CEO of ONGC. More than 60% of India's oil imports in a particular month or M-2 are primarily driven by price, with term crudes being an exception.

Singh noted that MRPL, a subsidiary of state-owned ONGC, imports crude oil for its refinery operations based on spot prices. This means that the amount of oil imported is decided cargo-to-cargo based on market conditions.

On the impact of price volatility on ONGC, Singh stated that the company's integrated business model provides a cushion against fluctuations. With 60% of the company's revenue coming from E&P and 40% from non-E&P businesses, ONGC is fairly balanced against price volatility.