India looks to store cheap oil in United States: Dharmendra Pradhan
NEW DELHI: India is looking at storing some low priced US oil in facilities there as its local storage is full, oil minister Dharmendra Pradhan said.
India’s plan could be similar to a move by Australia, which last month said it would build up an emergency oil stockpile initially by buying crude to store in the US Strategic Petroleum Reserve to take advantage of low oil prices.
“We are exploring some possibility if we can store some of our investment in a different country ... we are exploring the possibility in the USA if we can store some of the low priced oil,” Pradhan said.
Oil prices have dropped more than 40% so far in 2020 but have picked up in the past few weeks partly due to efforts by the Organization of the Petroleum Exporting Countries (Opec) and allies to reduce supply.
Pradhan said India, which is the world’s third biggest oil consumer and importer, had already filled its 5.33 million tonnes of strategic storage and parked about 8.5-9 million tonnes of oil on ships in different parts of the world, primarily in the Gulf.
普拉丹表示，印度是全球第三大石油消费国和进口国，533万吨的战略储备库已满，并将850 - 900万吨石油储存在船上，这些船主要集中在海湾地区。
Indian refiners have also filled their commercial tanks and pipelines with refined fuel and oil.
Pradhan said stored oil and products amounted to about 20% of India’s annual needs. India imports more than 80% of its oil requirements.
The government plans to build new strategic storage to expand capacity by 6.5 million tonnes. Pradhan said India was keen to have participation from global investors in building these facilities.
India’s fuel demand nearly halved in April to its lowest level since 2007 as a nationwide lockdown and travel curbs to combat the spread of novel coronavirus eroded economic activity.
So far in May, petrol and diesel demand is about 60%-65% of what it was in the same month last year and in June fuel consumption will return to the same level as June 2019, he said.
Oil prices have dropped 50% or more. Why doesn't the Govt offer a 25% discount and allow Indian Citizens to fill up thier vehicles.
We have over 30 Crore vehicles across India.
If the macro tanks are full, start filling the Micro tanks.
Each states need to have such storage tanks for their use of minimum 100 days !
K Mohan Hyderabad city
And why India is not passing the low crude oil price benefit to the customers
Typocal Baniya mentality of BJP. Buy at low price with taxpayers money and sell at higher price later to citizen. Even if we get crude free of cost our petrol price will stay above 75.
Due to this we will be in a position to reduce the import bill. Govt's options are very good.
Reduce the price to half in India and see people storing in sumps for ten years.
Storing oil during cheaper rate is helpful in reducing import bill...