Time to move towards responsible pricing: Pradhan

Union Minister for Petroleum and Natural Gas Dharmendra Pradhan on Wednesday pitched for "responsible pricing" which balances the interests of both producer and consumer.

"The world has for far too long seen a rollercoaster in prices and interventions which are detached from market fundamentals. It is high time to move towards responsible pricing, one that balances the interests of both producer and consumer. We also need to move to transparent and flexible markets for both oil and gas," Oil and Natural Gas Minister Dharmendra Pradhan said at the seventh international seminar of the Organization of the Petroleum Exporting Countries (OPEC) in Vienna on Wednesday.

"OPEC as a predominant supplier has the responsibility to maintain supply equilibrium. We expect from OPEC and its members a commitment to step in more than fill the gap to ensure sustainable prices. If the world has to grow as a whole, there has to be a mutually supportive relationship between producers and consumers" he added.

Pradhan's remarks at OPEC meet are coming at a time when India's domestic fuel prices reached the highest levels in the month of May.

"It is in the interests of producers that other economies keep growing steadily and rapidly so as to ensure growing energy markets for themselves. This is the key to energy sustainability."

Dwelling upon the crude oil prices, Pradhan stressed that crude prices have gone beyond the threshold limit globally impacting in specific the countries like India which is a key driver of the oil economy.

"Globally crude prices have gone beyond the threshold which can be sustained by the world, particularly countries like India which is a key driver of the oil economy. Prices are creating stress to the global economy and giving pain to India. Global economy outlook already has threats from trade wars, geo-political events and threat of instability coming back to the Eurozone. Already a fragile global economy will face a threat if oil price persists at these levels," he said.

Brent crude prices have surged since November 2016 - hitting a four-year peak of $80 per barrel - when the OPEC imposed production cuts.

Pradhan clarified that India is not in favour of prices as low as $30 per barrel but it also does not support the prevailing high price which dents the fiscal balance and undermine the country's development process.