G-20 energy ministers bat for cheaper energy supplies to support healthcare

The G20 Energy Ministers' focused on ways and means to ensure stable energy markets, which are affected due to demand reduction as result of coronavirus pandemic

Energy ministers of G20 nations on Friday batted for consumption-led demand recovery to help efforts towards economic revival. The meeting, held through video-conferencing, called for reliable and affordable energy supplies to support essential services, including healthcare.

The meeting was attended by Energy Ministers of G20 countries, guest countries and heads of international organizations including the Organization of the Petroleum Exporting Countries (OPEC), International Energy Agency and International Energy Forum.

In terms of the ongoing energy market fluctuations, India's petroleum minister Dharmendra Pradhan stated that India has always advocated for a stable oil market, which is reasonable for producers and affordable for consumers. Pradhan urged the global producers that oil prices should be targeted to affordable levels to allow for a consumption-led demand recovery.

The G20 Energy Ministers’ focused on ways and means to ensure stable energy markets, which are affected due to demand reduction as result of the Covid-19 pandemic and the ongoing surplus production -related matters. Pradhan appreciated the collective efforts of OPEC and OPEC-plus countries to balance the supply-side factors which is imperative for long-term sustainability. The meeting was called by Saudi Arabia, in its capacity as the G20 Presidency, and chaired by Saudi Arabia Energy Minister Abdulaziz bin Salman.

Pradhan highlighted the decision by India to provide 80.3 million poor families free LPG cylinders, as part of a $23 billion relief package. Pradhan said that India will continue to be the global energy demand centre. He also highlighted government of India’s efforts to fill in our Strategic Petroleum Reserves.

Taking advantage of the lower crude price regime, India has decided to top up its strategic oil reserves with millions of barrels of crude oil imported from Saudi Arabia, UAE and Russia. The purchase is seen as a move to stabilise the global energy market by raising the demand.  

According to the media reports, India has decided to buy oil worth around Rs 5,000 crore at current price to fill up three strategic reserves with a capacity of 5.33 million tonnes (MT). The price of Brent crude was seen at $31.48 a barrel at one point on Friday.