Committed to meet India's oil demand: Saudi Energy Minister

PM Modi Knew HAL Would Not Get Offset Contracts Says Congress

Here are the key highlights of Modi's meeting with heads of oil and gas companies

While the subcontinent country has abundant domestic deposits of coal, it meets 80 per cent of its crude oil requirements through imports.

Union Ministers Arun Jaitley and Dharmendra Pradhan and Vice-Chairman NITI Aayog Dr. Rajiv Kumar also present on the occasion.

Amid a non-stop rise in petrol and diesel prices Prime Minister Narendra Modi on Monday asked foreign oil companies to ease payment terms and channel their investible surplus into commercial exploitation in the developing countries.

Oil prices have reached four-year peaks as the market focused on upcoming USA sanctions on Iran while shrugging off the year's largest weekly build in USA crude stockpiles.

Modi noted that the oil market was producer-driven both in terms of quantity and price. "I don't understand. World fuel prices are falling, how are the petrol prices rising?"

While there are many factors that could influence global oil prices, Saudi Arabia and other major producers will continue to act to cushion the market from oil price shocks, Falih said at the India Energy Forum here.

Modi was speaking to oil ministers and chief executives of oil majors at a round table in New Delhi, a government statement said.

India is the world's third-largest consumer of oil, much of it imported from the Middle East.

The Opposition has repeatedly blamed the Centre for the steep hike in the fuel price, while the latter has maintained that global crude oil prices and other worldwide factors are responsible for the increase in prices of petroleum products.

He said, the cooperation of the oil producing countries would be very critical to bridge this gap.

Modi also sought the role of private participation in the distribution of the gas sector.

Modi's first meeting was on January 5, 2016, where suggestions for reforming natural gas prices were made.

The prime minister also spoke about the various policy initiatives and developmental measures undertaken by his government in the sector including liberalisation in gas pricing and marketing, open acreage licensing policy, early monetisation of coalbed methane, incentives for the discovery of small fields and seismic survey at a national level. But the plan could not go through in view of strong opposition from Oil and Natural Gas Corp (ONGC).

The PTI report stated that Saudi Oil Minister Khalid A Al Falih, BP CEO Bob Dudley, Total head Patrick Fouyane, Reliance Industries Chairman Mukesh Ambani and Vedanta chief Anil Agarwal are expected to attend the meeting on Monday.

Latest News