India In Discussion With America And Saudi Arabia Over Lowering Prices Might Impact The Crude Oil Market

Nov-2018 | 99Strategy | Oil and Gas

To reduce the prices of petrol and diesel, the government did not cut the tax, but now it is preparing to raise the issue internationally to relieve consumers. Petroleum Minister Dharmendra Pradhan said on Thursday that India will pressurize the world's largest oil producers, Saudi Arabia and the US to lessen the oil cost, to offer assistance to consumers.

He said that Saudi oil minister Khalid A. Al-Falih will be in India from February 23–24, while the US Energy Secretary Rick Perry will be in the country amid February 28 and March 1.

Pradhan said, “We feel that prices of oil should be reduced.”He said that in the meeting with producers, the world's third-largest oil consumer will raise the issue of India's crude oil's rational price and reduction in existing high levels.

The Prime Minister was asked why the government did not cut excise duty in 2018–19 budget presented in Parliament last week to give relief to the customers. After reaching the highest level of 4 years which was $71 per barrel, the value of Brent Crude has come down by 8%. On Thursday, it was

Former finance minister P. Chidambaram in Rajya Sabha during the budget discussion, he said, “The government had opted to spend the benefits of reduction in crude oil prices on free LPG schemes, education, road construction, and health.”

India in recent months received the shipment of the crude oil from America. However, the Indian government has been facing loads of humiliation from the opposition on the issue of rising fuel prices. While on the other side constantly growing consumer demand with efficient price has forced to implement required moves to control the price of the oil imported from the international partners.