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.
  • 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

Posted by Jawwad Kazi on 10th Mar 2021