You are here: Home » Economy & Policy » News
Business Standard

Review payment terms to support weaker rupee: PM Modi to global oil majors

PM Modi also said even after a decade, oil and gas would be driving forces of the energy market

Shine Jacob  |  New Delhi 

FILE PHOTO: Prime Minister Narendra Modi at Hyderabad House, in New Delhi | PTI photo

Prime Minister Narendra Modi on Monday urged global oil suppliers to review so as to provide some relief to a He was addressing oil ministers and chief executives of oil majors at an event in New Delhi.

According to a statement issued after the event, “he requested for review of so as to provide temporary relief to the local currency.” The has fallen 14.5 per cent this year, making oil and other imports more expensive.

Modi also made a case for a partnership between and consumers, highlighting how high might lead to a resource crunch for the major consumers. “The cooperation of the oil-producing countries would be critical to bridging this gap. The PM appealed to oil-producing countries to channel their investible surplus to pursue commercial exploitation in the oil sector in the developing countries,” the government statement said.

ALSO READ: Oil, battered rupee: Mounting risks that are difficult for RBI to ignore

The third-biggest oil consumer, India has over the past two months been battered by high crude that have sent retail petrol, diesel, and liquid petroleum gas rates to record highs, posed inflationary risks, and, together with a sliding rupee, threatened to upset the current account deficit. Also, unrelenting fuel price rise since mid-August has negated cut in taxes and subsidy.

assured that there would be no shortage in supply.

Khalid A Al-Falih, energy minister of and chairman of the board of Saudi Aramco, said: “We will be looking at consumer-facing sectors such as retail and petrochemicals, building an integrated downstream segment.”

Saudi Aramco, the world’s largest oil producer, is already a part of the Rs 3-trillion West Coast Refinery and Project. It has also joined Abu Dhabi National Oil Company and formed a joint venture with Indian oil-marketing companies for a 50 per cent stake in the 60-million-tonne Ratnagiri Refinery and in Maharashtra. This project will be ready by 2022.

Al-Falih said two Saudi energy majors, Sabic in the chemicals sector, and Maaden in phosphates are planning huge investments in India. He also said was keen on investing in India’s strategic project.

ALSO READ: Will oil be lucky for the RBI?

Other global leaders who were part of the meet are BP Chief Executive Officer (CEO) Robert Dudley, Royal Dutch Shell CEO Ben Van Beurden, ExxonMobil CEO Darren Woods, RIL Chairman Mukesh Ambani, and Vedanta Resources founder and Chairman Anil Agarwal.

Responding to Indian Petroleum Minister Dharmendra Pradhan’s claim that rising were creating problems for consumers, Al-Falih said current prices were balanced.

ALSO READ: Crude oil the catch for India's bonds after inflation offers relief

“We will continue to support the global economy, giving a cushion on pricing for consumers,” Falih said. He added that measures taken by and other had helped in global prices not touching the three-digit mark.

He also said even after a decade, oil and gas would be driving forces of the energy market.

Sultan Ahmed Al Jaber, CEO of Adnoc, said by 2040 India’s fuel demand will increase by 160 per cent. “Even then fossil fuels will remain 80 per cent of India’s oil requirement,” he added.

With inputs from agencies

First Published: Mon, October 15 2018. 20:13 IST