India eyes more crude oil taps
The country will diversify its crude import to meet its energy security and affordability, Union petroleum minister Hardeep Singh Puri said following the surprise production cut by the Organisation of the Petroleum Exporting Countries and its allies.
“This is their (Opec’s) sovereign right what they want to do but equally it is my job to point out that all actions have consequences, intended or unintended. India will be able to navigate through the situation with confidence,” the petroleum and natural gas minister said at the GEO India 2022 conference.
“We will not allow any shortages to come in. The government will do all that is required to ensure energy security and affordability,” he said.
Puri said the output cut “will hurt large importers like India, which spent around $120 billion last year on the import of petroleum products.” India buys about 85 per cent of its needs from overseas and its energy demands are set to rise to fuel its economic expansion.
“Some diversification has already happened and we will further diversify... there are many sources and we will not hesitate to take actions,” Puri added.
Output cuts could temporarily maximise revenue forOpec+ producers, but could tip the world into recession, he cautioned.
State fuel retailers have not raised pump prices since April and Puri said the country will be able to navigate the terrain“with confidence”.
The refiners have signed new oil supply deals with Colombia and Brazil and are scouting to buy stakes in oil-producing assets overseas, Puri said.