New Delhi, Oct 22 (PTI) India is looking to bring together PSU and private sector refiners to seek better crude oil import deals from Saudi Arabia and other nations, Oil Minister Hardeep Singh Puri said on Friday.
As the country grapples with record-high fuel prices, he said joint procurement will bring better bargaining power and help cut the import bill.
The minister said a meeting was convened by the secretary in his ministry with public and private refiners.
"I was very encouraged" by the result of the meeting, he told reporters here. "Outcome will be favourable."
He said private sector refiners have responded with enthusiasm to the proposal as it will help avoid one being played against another.
"These are normal issues in international trade," he added.
Presently, state-owned Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) separately procure crude oil from nations ranging from Saudi Arabia to the US.
Private sector Reliance Industries Ltd and Rosneft-based Nayara Energy buy their own requirement separately.
New Delhi thinks combining the buying power of all these can help drive a good bargain which can help bring down the oil import bill.
International oil prices climbing to a multi-year high of USD 85 per barrel has sent local retail petrol, diesel and LPG prices to record levels.
India, which imports 85 per cent of its oil needs and is the world's third-largest energy-consuming and importing country, has been impressing upon producers to raise output to help stabilise rates at affordable levels.
"In last few months, global oil prices have risen from USD 19.56 per barrel in April last year to USD 84-85," Puri said.
While a variety of reasons, ranging from severe winter in some parts of the world to demand recovering at a faster-than-expected phase are responsible for the demand-supply mismatch and the resultant price spike, there has been under-investment in the sector, he said.
"Energy transition also has a way of imposing a cost," he said, adding consuming nations need an affordable price of energy.
High prices, he said, may dent the economic recovery that the world is experiencing after a devastating pandemic.
Oil prices have to be affordable for consumers and remunerative enough for the producers.
"It is a win-win only if price matrix is responsive to both producing and consuming nations," he noted.
