Government is preparing to establish a group of refiners for seeking much better crude dealsIndia is forming a group that brings together state-run and personal refiners to seek better crude import offers, Petroleum Secretary Tarun Kapoor stated on Tuesday, as the nation grapples with skyrocketing oil prices.The world's third biggest oil importer and customer, India depends on imports for about 85 percent of its crude and purchases most of it from Middle East producers.Initially the group of refiners will meet when in a fortnight and exchange concepts on crude purchases.
The companies can form joint methods and they can even opt for joint negotiations wherever possible, Mr Kapoor informed Reuters.State refiners currently collectively negotiate some crude oil purchasesTo date the one effort at a joint settlement uniting not just state-run however private refiners led to an offer that secured supply of Iranian oil at a deep discount rate.
With regional fuel and gasoil costs rising to a record high amid the nation's worst power crisis in years, the country wishes to redouble its efforts to buy wisely.India's trade deficit in September surged to a record $22.6 billion, its greatest in at least 14 years, driven by pricey imports.Mr Kapoor stated the Organisation of the Petroleum Exporting Countries (OPEC) and its allies, together referred to as OPEC+, should raise production to bring down worldwide oil prices.
OPEC+ needs to realise that this is not the best method, they should step up production.
If the demand is going up and you are not increasing production, you are attempting to develop a gap, he stated.
Due to this, rates are going up which's unfair, the Secretary added.OPEC+ manufacturers just recently accepted adhere to a strategy to increase November output by 400,000 barrels each day (bpd) as it seeks to phase out output curbs of 5.8 million bpd over time.Mr Kapoor stated increasing oil prices would prompt oil customers to seriously begin thinking of moving to other forms or reduce their demand for OPEC oil somehow.
These sort of costs are not sustainable .
India is currently reducing the share of OPEC oil in its unrefined mix as refiners, that have actually invested billions of dollars in refinery upgrades, are tapping cheaper oil.
High oil costs are spurring investment in upstream activities, that could lead to higher production from regions besides the Gulf, Mr Kapoor noted.