Indian refiners may reduce oil imports as crude prices soar, rupee struggles

India, the world’s third-biggest oil importer, is considering reducing oil purchases to mitigate the pain of high crude prices and the declining rupee, said two sources at different Indian refineries with direct knowledge of the matter.

The soaring import costs are becoming a headache for Prime Minister Narendra Modi’s government ahead of general elections next year.

Indian refinery officials met on Sept. 15 in Mumbai to discuss options for dealing with the rising oil prices which have been exacerbated by the declining rupee, said the two sources who attended the meeting.

“One of the immediate steps that the refiners are considering is to reduce crude purchases for a short time and reduce our inventory,” said one of the sources, who declined to be named as the meeting was confidential.