PM urges cooperation of oil suppliers | Fusion - WeRIndia

PM urges cooperation of oil suppliers

PM urges cooperation of oil suppliers

As the concerns on rising fuel are increasing, Prime Minister Narendra Modi met the top executives of global and Indian oil and gas companies yesterday in the third oil meeting to assess the emerging situation.

He urged the cooperation of oil supplying countries for a partnership between oil producers and consumers in order to stabilize the global economy. He appealed them to pursue their commercial exploitation especially in the developing nations.

India is mainly dependent on imports of oil. This is almost 80 per cent of its oil. Thus, the oil imports have enormous affect in weakening the rupee against the US Dollar.

So, India in one way is troubled with the rising fuel oil prices, and in another way payment for the suppliers due to the weakening of the rupee.

In this context, PM urged the international oil suppliers to review payment terms at least temporarily considering the weakening of rupee.

In this meeting, Union Ministers such as Arun Jaitley and Dharmendra Pradhan are present in addition to the ministers from Saudi Arabia and UAE, and CEOs of various organizations.

PM emphasized on the economic challenges faced by the oil consuming countries due to rising crude oil prices in this meeting.

He added that the cooperation of oil producing countries is very essential in this regard to bridge the gap between the oil suppliers and consumers.

He said that, the quantity and prices of fuel are determined by the oil producing countries as the market is producer driven.

Earlier, the central government reduced the excise duty by ₹2.5 to control the fuel prices. Even some state governments also reduced the VAT by ₹2.5. But, the prices are not controlled as expected.

People are irate with the spiraling fuel prices and the government is worrying on this issue due to elections for some states ahead in this year and for Lok Sabha next year.

Image credit: Image by IADE-Michoko from Pixabay (Free for commercial use)

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