Prime Minister Narendra Modi on Monday sought to put the responsibility of surging oil prices on the international community of oil producers.
Amidst continuous rise in fuel prices, the Prime Minister lamented that both the quantity and prices were being determined by oil producing countries, unlike other sectors which are consumer-driven. He noted with surprise that despite enough production, prices continued to go up, pushing consuming countries towards a resource crunch.
Using the presence of ministers from Saudi Arabia and UAE here, along with global and domestic oil CEOs to make the point on the global oil producers, Modi made a strong case for partnership between producers and consumers in the oil market, as it existed in other sectors.
The Prime Minister highlighted key policy issues relevant to India, including economic challenges and the resource crunch faced by oil-consuming countries due to rising crude prices. He also suggested review of payment terms to provide temporary relief to the local currency.
India, which imports over 80 per cent of its oil needs, spent $87.7 billion (Rs 5.65 lakh crore) on importing 220.43 million tonne (MT) of crude oil in 2017-18. For 2018-19, the imports are pegged at almost 227 MT. The country's crude oil import bill jumped by about $26 billion in 2018-19.
India has been under pressure as crude prices have surged against a weakening rupee. "The cooperation of the oil-producing countries would be very critical to bridge this gap," said PMO officials quoting Modi.
In attendance at the meeting were CEOs and experts from global organisations including Saudi Arabia's ARAMCO, ADNOC, BP, Rosneft, HS Markit, Pioneer Natural Resources Company, Emerson Electric Company, Tellurian, Mubadala Investment Company, Schlumberger, Wood Mackenzie, World Bank, International Energy Agency (IEA), NIPFP, Brookings India and several Indian companies. Union Ministers Arun Jaitley and Dharmendra Pradhan were also present along with vice-chairman NITI Aayog Rajiv Kumar and senior government officials.
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