Government To Set Up Refiners' Panel For Seeking Better Crude Deals
NDTV
India is forming a group that brings together state-run and private refiners to seek better crude import deals
India is forming a group that brings together state-run and private refiners to seek better crude import deals, Petroleum Secretary Tarun Kapoor said on Tuesday, as the country grapples with soaring oil prices.
The world's third largest oil importer and consumer, India depends on imports for about 85 per cent of its crude and buys most of it from Middle East producers.Initially the group of refiners will meet once in a fortnight and exchange ideas on crude purchases. "The companies can form joint strategies and they can even go for joint negotiations wherever possible," Mr Kapoor told Reuters.
State refiners already jointly negotiate some crude oil purchasesTo date the one effort at a joint negotiation bringing together not only state-run but private refiners resulted in a deal that secured supply of Iranian oil at a deep discount. With local gasoline and gasoil prices rising to a record high amid the country's worst power crisis in years, the nation wants to redouble its efforts to buy wisely.
India's trade deficit in September surged to a record $22.6 billion, its highest in at least 14 years, driven by expensive imports.
