Petroleum minister seeks 'responsible pricing' from Oil countries amid soaring fuel prices

Amid the rising fuel prices in the country, Union Petroleum Minister Dharmendra Pradhan on Wednesday urged Saudi Arabia and other global oil producers to ease production cuts, saying rising international oil prices are "hurting economic recovery and demand." Demand recovery should take "primacy" over oil prices at least for the next few months, Dharmendra Pradhan said.

"The rising crude oil prices during the last few weeks is hurting the fragile global economic recovery due to significant demand contraction, which might even mirror the impact of COVID-19 in its initial stages," Pradhan said at the 11th IEA IEF OPEC Symposium on Energy Outlooks.

'India is adversely affected by rising petroleum prices'

International oil prices have been on the boil since Saudi Arabia pledged additional voluntary output cuts of 1 million barrels per day in February and March under a deal between the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, a group known as OPEC+. This has resulted in oil prices rising to USD 63 per barrel, the highest level in more than a year, leading to retail pump rates in India breaching the Rs 100 a litre mark.

India, he said, had contained the inflationary pressures on several fronts but not those impacted by crude prices. "The price-sensitive Indian consumers are affected by rising petroleum product prices. It also affects demand growth, which could potentially impact the delicate aspirational economic growth trajectory not just in India but in other developing countries as well," he said.

Referring to the output cut, Pradhan said the collective interests of both producing and consuming nations need to be promoted.

"The key producing countries have not only revised the production cuts over and above the previously announced levels but also added additional voluntary cuts. I had supported the joint decision by major oil-producing countries to cut oil production in April last year amid a sharp fall in demand due to the COVID pandemic. Time has come once again for allowing the collective interests of both producing and consuming countries to be promoted," he said.

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With Saudi Oil Minister Abdulaziz bin Salman Al Saud and OPEC Secretary-General Mohammad Sanusi Barkindo listening, Pradhan said a balanced approach needs to be adopted at this juncture. India, he said, remains dedicated and committed to evolving a sustainable energy future for all, and will leverage all available energy resources. Price of petrol crossed the Rs 100 per litre mark in Rajasthan after fuel rates were hiked for the ninth day in a row. Since India imports the majority of its oil needs, retail rates are benchmarked to international prices, which have spiralled in recent weeks.

The symposium saw the presence of heads of all top inter-governmental energy agencies -IEF, IEA, OPEC, IRENA and the GECF. Also, dignitaries like H.E. Norma RocíoNahle García, Secretary of Energy, Mexico and H.E. Timipre Sylva, Minister of State of Petroleum Resources of Nigeria participated in the event, according to an official statement by the Ministry of Petroleum & Natural Gas.

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(With PTI inputs)