Pradhan rings up US energy secretary Perry as high oil prices bite
Sanjay Dutta | TNN | Jun 11, 2019, 04:38 IST
NEW DELHI: Oil minister Dharmendra Pradhan on Monday called up US energy secretary Rick Perry to discuss impact of crude volatility on consuming nations, particularly India.
The telecon came in the backdrop of India ending oil imports from Iran following sanctions imposed by the Trump administration.
Iran has been one of India’s top three oil suppliers and offered favourable economic terms. Since India stopped Iran oil imports, its cost of crude purchase from alternative sources have gone up.
Amid the crude price volatility, however, Washington has emerged as a key energy partner for India, which is expected to import natural gas and oil worth $5 billion from the US.
US President Trump is known to have stepped in several times in the last couple of years to moderate global oil by pressuring OPEC lynchpin Saudi Arabia to raise output.
"Also discussed about crude oil price volatility and its impact on the Indian consumer. I also pointed to the important role that the US plays in bringing global price stability," Pradhan said in another tweet.
New Delhi is wishing for concessions from Washington to compensate for the fiscal benefits it had enjoyed from Teheran.
India has been steadfast in its demand for a sustainable oil price pricing regime. It has has time and again warned oil producers that higher crude prices stifle global economic growth, which in turn ultimately end up hurting the producers by pulling down demand.
In recent years, the US emerged as a countable energy supplier for India. State-run has utility GAIL has tied up nearly 6 million tonne of shale gas from the US. GAIL has been asking for renegotiating the pricing to reflect the suppressed gas market scenario prevailing for the last few years.
Recently flagship refiner-marketer has also contracted oil supplies from the US, with an estimated value of $2 billion, to replace Iranian supplies.
India is dependent on imports to meet its 83 per cent of the demand and more than half of its natural gas requirements.
Prime Minister Narendra Modi in 2015 had set a target of reducing India's oil dependence by 10 per cent to 67 per cent (based on import dependence of 77 per cent in 2014-15) by 2022. Import dependence has only increased since then and the government is now looking for ways to raise domestic output.
The telecon came in the backdrop of India ending oil imports from Iran following sanctions imposed by the Trump administration.
Iran has been one of India’s top three oil suppliers and offered favourable economic terms. Since India stopped Iran oil imports, its cost of crude purchase from alternative sources have gone up.
Amid the crude price volatility, however, Washington has emerged as a key energy partner for India, which is expected to import natural gas and oil worth $5 billion from the US.
US President Trump is known to have stepped in several times in the last couple of years to moderate global oil by pressuring OPEC lynchpin Saudi Arabia to raise output.
"Also discussed about crude oil price volatility and its impact on the Indian consumer. I also pointed to the important role that the US plays in bringing global price stability," Pradhan said in another tweet.
Had a telephonic conversation with United States Secretary of Energy, HE @SecretaryPerry. Thanked him for his good… https://t.co/nO5QRF6RsH
— Dharmendra Pradhan (@dpradhanbjp) 1560176051000Also discussed about crude oil price volatility and its impact on the Indian consumer. I also pointed to the import… https://t.co/acq9TfeQYA
— Dharmendra Pradhan (@dpradhanbjp) 1560176052000New Delhi is wishing for concessions from Washington to compensate for the fiscal benefits it had enjoyed from Teheran.
India has been steadfast in its demand for a sustainable oil price pricing regime. It has has time and again warned oil producers that higher crude prices stifle global economic growth, which in turn ultimately end up hurting the producers by pulling down demand.
In recent years, the US emerged as a countable energy supplier for India. State-run has utility GAIL has tied up nearly 6 million tonne of shale gas from the US. GAIL has been asking for renegotiating the pricing to reflect the suppressed gas market scenario prevailing for the last few years.
Recently flagship refiner-marketer has also contracted oil supplies from the US, with an estimated value of $2 billion, to replace Iranian supplies.
India is dependent on imports to meet its 83 per cent of the demand and more than half of its natural gas requirements.
Prime Minister Narendra Modi in 2015 had set a target of reducing India's oil dependence by 10 per cent to 67 per cent (based on import dependence of 77 per cent in 2014-15) by 2022. Import dependence has only increased since then and the government is now looking for ways to raise domestic output.
Download The Times of India News App for Latest Business News.
more from times of india Business
LATEST VIDEOS
All Comments ()+^ Back to Top
Refrain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks, name calling or inciting hatred against any community. Help us delete comments that do not follow these guidelines by marking them offensive. Let's work together to keep the conversation civil.
HIDE