Reliance Industries’ 48th Annual General Meeting (AGM) drew wide attention this year as its oil business came under the spotlight. The company’s heavy dependence on Russian oil, which has helped boost profits in recent years, is now facing new challenges after the United States doubled tariffs on Indian exports. This move came in response to India’s increasing oil trade with Russia, putting Reliance at the centre of both opportunity and pressure.
Energy Market Challenges
Reliance admitted that the past year has been one of the toughest for the energy sector. Global supply chains were disrupted, trade routes changed, and there was excess supply in the petrochemical industry. These factors created difficulties for Reliance’s refining and oil operations. However, the company maintained that it still managed to deliver strong results despite these hurdles.
Russian Oil Advantage
Discounted crude from Russia has given Reliance a major advantage, saving billions of dollars in costs. But this benefit has also attracted criticism from Western countries, which accuse Indian refiners of indirectly supporting Russia’s war economy. This has put Reliance in a sensitive position where it must weigh profits against global political pressure.
Balancing Profits and Politics
The timing of the AGM, soon after the U.S. announced higher tariffs, highlighted how Reliance is caught between two sides. On the one hand, Russian oil deals remain highly profitable. On the other hand, they bring increased international scrutiny. Industry experts believe the company will now have to carefully balance its energy partnerships with growing diplomatic concerns.
Diversification and Future Focus
While oil was the main talking point, Reliance also used the AGM to outline its plans for the future. The company said it will continue to invest heavily in digital services, retail expansion, and clean energy projects. By doing so, it aims to reduce its dependence on crude oil revenues and build a stronger, more balanced business model.
A Larger Picture for India
Reliance’s situation reflects India’s bigger challenge of securing affordable energy while handling international criticism. Since Russian oil now makes up a large share of India’s imports, Reliance’s choices could have an impact not just on its business but also on India’s overall energy policy.
