Union Petroleum Minister Dharmendra Pradhan said that India is the world’s third largest oil importer and consumer, which wants to boost production to meet its promise of stable crude markets to OPEC + producers.
Mr Pradhan said at the CERAWeek conference by IHS Markets that India, where fuel demand is recovering from pre-pandemic levels, would like to rely on fair and responsible oil prices.
Production cuts by the OPEC + group, with the cooperation of partners including the Organization of Petroleum Exporting Countries (OPEC) and Russia have recovered oil prices from last year’s price crash.
Crude benchmark rose more than 2% on 3 March, as OPEC + expected to take a decision against raising output to reduce prices found on 4 March. The group previously expected ease of production cuts.
Rising oil prices are posing fiscal challenges for the country, where heavy retail fuel prices have recently touched record highs, threatening a demand-driven recovery.
Mr. Pradhan said that India had supported the OPEC + decision to cut crude oil production last year when oil demand declined due to the outbreak of coroners.
“[At] At that time producers assured us, especially OPEC, reassuring the global market that by early 2021 demand would return and production would be as usual. But I regret to say that by this time production has yet to return to normal.
He added that higher oil prices may correspond to “some of our friends”, but emerging countries like India need fair prices.
India imports around 84% of its oil needs, with more than 60% coming from Middle Eastern countries. Mr. Pradhan said that India would scout for alternative routes and energy sources, including green hydrogen, especially if prices kept rising.
“Today we expect producing countries, especially OPEC and its friends, that they should do business as usual [over] He promised about that responsible fair price. “