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Government asks refiners to diversify oil imports
Why is it in news?
- As per the government sources, India has asked state refiners to speed up diversification of oil imports to gradually cut their dependence on West Asian suppliers.
- The reports came after OPEC+ decided last week to largely continue production cuts in April.
Details:
- India is world’s third biggest oil consumer.
- India imports about 84% of its crude needs with over 60% of that coming from West Asian countries.
- The oil from West Asian countries is typically cheaper than those from the West.
- India, hit hard by rising oil prices, has urged OPEC producers to ease output cuts and help the global economic recovery.
- In response, the Saudi energy minister told India to dip into strategic reserves filled with cheaper oil bought last year.
- Iraq and Saudi Arabia are the two biggest suppliers of crude oil to India.
Source: The Hindu