New Delhi: India has faced a frequent price hike in fuel prices in the last few months. However, the government’s proposal to release crude oil from strategic reserves will relieve the burden of ordinary people bearing fuel price hikes.
India intends to reduce fuel prices by releasing about 5 million barrels of crude oil from its emergency stockpile. The country will release the crude oil along with the US, Japan, and other major economies.
Last week, the United States had presented the recent request to some of the world’s largest oil-consuming countries. These countries included China, India, and Japan, to reflect releasing crude stockpiles to reduce global energy costs.
India preserves approximately 38 million barrels of crude oil in underground caverns at three east and west coast locations.
Out of this, the nation plans to release about 5 million barrels, starting as early as 7-10 days, said an official.
Mangalore Refinery and Petrochemicals Ltd (MRPL) and Hindustan Petroleum Corp Ltd (HPCL), connected by pipeline to the strategic reserves will sell these stocks.
India firmly believes that the pricing of liquid hydrocarbons should be fair, and efficient. It further considers that demand forces should determine the prices.
“India has frequently shown concern at the supply of oil being artificially set below market levels by oil-producing nations, leading to rising rates and negative attendant outcomes,” it added.
However, the statement did not provide the date for the release of these stocks.
India is the world’s third-largest oil consumer and importing nation. The rise in global oil prices has critically affected the nation.