NEW DELHI: Citing that rising global oil prices is impacting growth of developing nations, Oil Minister Dharmendra Pradhan on Wednesday urged the Organization of the Petroleum Exporting Countries (OPEC) to fill the supply gap and ensure sustainable oil prices.
“Political conditions, both external and internal, result in reduced output of some countries…We expect OPEC and its members to fill the supply gap and ensure sustainable price,” Pradhan said at the OPEC seminar in Vienna.
The minister was referring to the recent sanctions levied on Iran by United States which will significantly cut down its exports and to the internal political unrest going on in another oil major country Venezuela.
Pradhan said that rising crude prices have gone above the sustainability threshold of the world and is causing undue hardship for the developing economies like India which meets around 80 per cent of its demand through imports.
“India favours reasonable and balanced pricing which do not undermine its development process,” Pradhan said, adding that India believes that $55 to $60 a barrel is a reasonable price level for now.
Brent crude, was trading near $75 a barrel on Wednesday. In New Delhi, one litre of petrol was priced at Rs 76.27 down by 8 paisa compared to previous day price of Rs 76.35, while diesel prices remained remain unchanged at Rs 67.78 per litre.
It is being reported that India plans to seek exemptions to continue Iranian oil imports and make payments for purchases after America decided to reimpose sanctions on Iran, which is one of India’s topmost supplier.