Petroleum and Natural Gas and Steel minister Dharmendra Pradhan stated there is a need to phasing out production cuts. He said this during his high-level consultation meeting with OPEC Secretary General Mohammed Sanusi Barkindo.
He also emphasised that crude prices should remain within a reasonable band. His statement comes at a time when petrol and diesel rates were hiked yet again on Thursday, taking fuel prices across the country to a new record high. In Delhi, petrol hit an all-time high of Rs 97.76 a litre, while diesel is now priced at Rs 88.30 per litre.
Both sides discussed recent oil market developments, trends in oil demand recoveries, economic growth forecasts and overcoming energy challenges among other issues of mutual interest during the consultation meeting.
Pradhan reiterated his request of phasing out production cuts and putting a reasonable pricing to crude, which will be in the collective interests of both consumers and producers. He added this approach will “encourage a consumption-led recovery.”
He emphasised that “high crude prices are adding significant inflationary pressure on India.”
Pradhan conveyed his deep appreciation to OPEC, Secretary General Barkindo and to key partner countries—Saudi Arabia and the UAE, for their support to India during the second wave of the COVID-19, especially with supplies of medicines, ISO containers, LMO and vital petroleum products.