Joe Biden win likely to soften petrol, diesel prices in India, says expert

If fulfilled, Joe Biden’s electoral promise to revive the Iran nuclear deal would help domestic oil marketing companies in getting crude oil at a comparatively cheaper price, said energy expert Dr. Hiranmoy Roy.

Business Desk, ETV Bharat:Joe Biden’s victory over Donald Trump in the recent US presidential elections likely to have a positive domino effect on India’s energy market as the incoming president may lift sanctions on Iran’s oil exports, an energy expert told ETV Bharat.

“Though it may take some time after assuming the office, Joe Biden highly likely will revive the nuclear deal with Iran,” said Dr Hiranmoy Roy, Head - Department of Economics and International Business, in the University of Petroleum and Energy Studies.

Dr Roy, who closely tracks the global as well as domestic energy markets, has said geopolitical equations play a prominent role in the global energy market and revival of the deal would help India in getting comparatively cheaper oil imports from the extended neighbour.

During the campaign, Biden reiterated his commitment to revive the Joint Comprehensive Plan of Action (JCPA) that came into effect in 2016 under Barack Obama rule and got suspended later by the Donald Trump administration in 2018.

“If Iran returns to strict compliance with the nuclear deal, the United States would rejoin the agreement as a starting point for follow-on negotiations,” said Joe Biden.

The US-sponsored JCPA, which is also known as the Iran nuclear deal, was signed between Iran and the US, China, France, the UK, Russia and Germany. The deal was meant to lift sanctions on Iran’s oil exports if the country agrees to halt stockpiling of enriched uranium.

It may be recalled Iran was the third largest crude oil supplier to India before sanctions came into effect under the Trump administration.

As per an estimate, India imported around 2.4 crore tonne of crude in 2018-19 up from 2.2 crore tonne in 2017-18.

“India being a net oil importer, positive US-Iran relations would definitely help India’s oil marketing companies in reducing petrol and diesel,” added Dr Roy.