Wednesday, 20 February, 2019

Modi urges oil suppliers to review payment terms to give rupee relief

As Fuel Prices Rise PM Modi To Meet Major Oil Company Heads Tomorrow Modi urges oil suppliers to review payment terms to give rupee relief
Nellie Chapman | 16 October, 2018, 17:54

According to ANI, the meeting is expected to begin around 10 AM.

Despite the government's move earlier this month to reduce Value-Added Tax on fuel prices by Rs 2.5 and several BJP-ruled states announcing a similar rate cut on petrol and diesel prices, there has not been much relief for the common as the petrol reached Rs 82.72 per litre in Delhi and Rs 88.18 in Mumbai on Sunday.

The RBI said in its policy statement: "Global headwinds in the form of escalating trade tensions, volatile and rising oil prices, and tightening of global financial conditions pose substantial risks to the growth and inflation outlook".

Union ministers Arun Jaitley and Dharmendra Pradhan; Vice-Chairman NITI Aayog Dr Rajiv Kumar and senior officials from the Union Government and NITI Aayog were also present at the interaction. "I don't understand. World fuel prices are falling, how are the petrol prices rising?"

The Congress has kept up the pressure on the government over the oil price rise.

"Many factors lie outside the control of oil producers like us. we only control supply", he told reporters. More than a year later, the government allowed higher natural gas price for yet-to-be-produced fields in hard areas like the deep sea.

He also sought the role of private participation in the distribution of gas sector. But the plan could not go through in view of strong opposition from Oil and Natural Gas Corp (ONGC). Modi also spoke about the various policy initiatives and developmental measures undertaken by government in the sector. The country is heavily dependent on imports, with around 83 per cent of the fuel being bought from overseas.

PM Modi will meet heads of leading oil and gas companies of India as well as those outside.

South Korea did not import any oil from Iran in September for the first time in six years, before United States sanctions against the Middle East country take effect in November, customs data showed on Monday. Import dependence has only increased since then and the government is now looking for ways to raise domestic output.

Rejecting claims that India has sought a waiver of sanctions from the U.S. as to continue purchasing crude oil from Iran, Oil Minister Dharmendra Pradhan said he has articulated the country's position on importing oil from the Persian Gulf nation in November and "there is nothing new to repeat".