CENTRE TO RELEASE 5 MILLION BARRELS CRUDE OIL FROM STRATEGIC RESERVES

The government has agreed to release 5 million barrels of crude oil from its strategic petroleum reserves in consultation with other global energy consumers, Union Minister of State for Petroleum and Natural Gas Rameswar Teli in a written reply to a question in the Rajya Sabha said on Monday.

Indian Union Muslim League (IUML) MP from Kerala Abdul Wahab raised the question in Rajya Sabha “whether there is any move to release oil from India’s strategic reserves in coordination with other countries.”

In a written reply, the Union Minister said that in order to provide relief to citizens the government of India agreed to release 5 million barrels of crude oil from its Strategic Petroleum Reserves, in consultation and parallelly with other major global energy consumers including the USA, People’s Republic of China, Japan and the Republic of Korea.

“The domestic price of crude is linked to international benchmarks of crude prices. These benchmarks get affected by many factors including supply and demand, futures’ trading, the impact of the covid scenario and geopolitical situation. Linear co-relation between pricing and any one of these factors in isolation, is indeterminable,” MoS Petroleum and Natural Gas further informed Rajya Sabha. Union Minister said that the government has been consistently reviewing the high petroleum and diesel prices domestically.

“With a view to controlling inflationary pressures, Government of India had reduced the ‘central excise duty’ on petrol and diesel by Rs 5/litre and Rs 10/litre respectively on November 3, 2021. It was followed by a reduction in VAT on fuel by many State Governments,” the minister said.