Global push to cap oil prices: India to release 5 mn barrels from reserves
India strongly believes that the pricing of liquid hydrocarbons should be reasonable, responsible and be determined by market forces. India has repeatedly expressed concern at supply of oil being artificially adjusted below demand levels by oil producing countries, leading to rising prices and negative attendant consequences.
India has agreed to release 5 million barrels of crude oil from its Strategic Petroleum Reserves. This release will happen in parallel and in consultation with other major global energy consumers including the USA, People’s Republic of China, Japan and the Republic of Korea.
Hon’ble Prime Minister Modi has been consistently reviewing the high petroleum/diesel prices domestically. In a bid to control inflationary pressures, Government of India had reduced the ‘central excise duty’ on petrol and diesel by Rs. 5 and Rs. 10 respectively on 3 November 2021. It was followed by reduction in VAT on fuel by many state governments. These difficult steps, despite the high fiscal burden on the Government, were taken in order to provide relief to citizens.