Business News | Crude Prices to Remain Unaffected by US Tariff Threat, Supply Chain Disruptions May Occur Says IOCL Chairman
Get latest articles and stories on Business at LatestLY. Amid the ongoing tariff threat from the US President Donald Trump, the crude oil prices will not be affected by it, says A S Sawhney, Chairman of Indian Oil Corporation Ltd (IOCL).
New Delhi [India], February 12 (ANI): Crude oil prices will remain unaffected by US President Donald Trump tariff threats, according to Chairman of Indian Oil Corporation Ltd (IOCL), A S Sawhney.
In an exclusive conversation with ANI on the sidelines of India Energy Week 2025, Sawhney however, noted that potential trade restrictions could disrupt supply chains, logistics, and trade routes.
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He mentioned that the tariff affect will not work in crude prices because if the U.S. imposes tariffs on crude imports from say Mexico, American refiners would seek alternative suppliers, while Mexican oil would be redirected to other markets.
He said "There could be disruptions in supply chains, logistics, and trade routes. If the U.S. imposes restrictions on crude oil imports from Mexico, US refiners will stop purchasing from Mexico, and Mexican oil will be diverted to other markets".
Talking on the developments of renewable energy he stated that in a major step toward decarbonizing the aviation sector, IOCL is ramping up production of Sustainable Aviation Fuel (SAF).
He shared that the Chennai Petroleum Corporation Limited (CPCL) refinery has already demonstrated its ability to manufacture SAF, while the Panipat refinery is expected to commence SAF production by June 2025.
The IOCL has set ambitious SAF adoption targets of one per cent usage by 2027, two per cent by 2028 and 5 per cent by 2030. To meet these goals, IOCL is setting up a large SAF production facility in Panipat, aiming to dominate the SAF fuel supply chain across India.
He also shared that IOCL is setting up India's largest green hydrogen plant in Panipat with a capacity of 10,000 tons per annum.
He mentioned that this project is expected to play a pivotal role in shaping the country's green hydrogen ecosystem by determining its pricing and viability. The initiative aligns with India's broader push for renewable energy and aims to make hydrogen fuel a commercially viable option in the future.
IOCL is also focusing on Compressed Bio Gas (CBG) as part of its renewable energy initiatives. The company, in collaboration with its partners, is establishing 30 bio-gas plants to create an ecosystem that will encourage entrepreneurship in this sector. Additionally, IOCL is actively exploring acquisitions in the renewable energy sector to strengthen its sustainability portfolio.
With these initiatives, IOCL is reinforcing its commitment to sustainability while ensuring energy security and resilience against global trade uncertainties. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)