India's Hardeep Puri holds talks with Opec Secy-General; discusses volatility in global oil markets

Business Saturday 20/April/2024 07:22 AM
India's Hardeep Puri holds talks with Opec Secy-General; discusses volatility in global oil markets

New Delhi: Union Minister Hardeep Singh Puri held a telephonic conversation with Opec Secretary General, Haitham Al-Ghais on Friday and discussed the recent trends and volatility in the global oil markets and their implications for international energy stability.

As one of the world's fastest-growing economies, India is committed to supporting efforts to achieve balance in global energy markets, said Hardeep Puri during the conversation, the Ministry of Petroleum and Natural Gas said in a press release.

The Union Minister also emphasized the importance of balancing market stability, affordability, with pragmatism.

India and Opec have a longstanding partnership. India is the second largest export destination for Opec.

India imported crude oil, LPG, LNG, and petroleum products from Opec countries of worth around USD 120 billion in the financial year 2022-23.

Last month, Puri said that the prices of cooking gas in India, after the latest round of reduction, are one of the lowest globally, and even lower than in most producing nations.

He said that India did not put the burden of rising energy prices on its citizens when global prices of LPG skyrocketed, and instead followed a 'citizens first' approach.

During the Covid period from June 2020 to June 2022, the international prices of LPG increased by around 300 per cent, according to the central government.

However, to insulate consumers from fluctuations in international LPG prices, the cost increase was not fully passed on to consumers of domestic LPG. Accordingly, domestic LPG prices were raised by only 72 per cent during this period, leading to significant losses for the oil marketing companies.

The Union Minister said that the Centre was able to keep oil prices from shooting up despite global turbulence amid the Russia-Ukraine conflict and drone attacks on merchant ships in the Red Sea.

85 per cent of India's crude requirements are met by imports, with the price of crude in the international market being the benchmark, he added.