Government of India has agreed to release 5 million barrels of crude oil
Government of India has agreed to release 5 million barrels of crude oil
Government of India has been taking all ameliorating measures to safeguard the energy security of the country by ensuring energy justice for all citizens
The Minister of State for Petroleum and Natural Gas, Shri Rameswar Teli in a written reply to a question in the Rajya Sabha today informed that the Government of India has agreed to release 5 million barrels of crude oil from its Strategic Petroleum Reserves, in consultation and parallely with other major global energy consumers.
India strongly believes that the pricing of liquid hydrocarbons should be reasonable, responsible and be determined by market forces. India has repeatedly expressed concern at supply of oil being artificially adjusted below demand levels by oil producing countries, leading to rising prices and negative attendant consequences.
As per the consumption pattern of 2019-20, the total capacity in the established Strategic Petroleum Reserves (SPR) facilities with total capacity of 5.33 Million Metric Tonnes (MMT) is estimated to provide for about 9.5 days of crude oil requirement. Oil Marketing Companies (OMCs) currently have stock for 64.5 days. Hence, total capacity storage of petroleum products is 74 days.
Government of India has been taking all ameliorating measures to safeguard the energy security of the country by ensuring energy justice for all citizens. It has been consistently reviewing the high petroleum/diesel prices domestically. With a view to controlling inflationary pressures, Government of India had reduced the ‘central excise duty’ on petrol and diesel by Rs. 5/litre and Rs. 10/litre respectively on 3 November 2021. It was followed by reduction in VAT on fuel by many State Governments.
Refilling of Strategic Petroleum Reserves is undertaken keeping in mind a host of factors, including the grade of crude and international market conditions.
