New Delhi, February 9 (IANS). Foreign Secretary Vikram Misri said on Monday that decisions related to India’s energy sources are taken entirely on the basis of national interest, with special emphasis on diversification and competitive pricing. His statement came in response to reports which claimed that India may cut Russian oil imports after the announcement of an interim trade agreement with the US.
Responding to questions regarding Russian crude oil, the Foreign Secretary said that being a developing economy and a major importer of energy, it is imperative for India to give priority to stable and affordable energy supply.
He said protecting the interests of Indian consumers is the “top priority of the government”. Misri said India imports 80 to 85 percent of its total energy needs and such high dependence can also affect inflation.
The Foreign Secretary explained that the government’s aim is to ensure that “consumers have access to energy at the right price, in sufficient quantity and through reliable and safe sources.” He said that the energy import policy is entirely driven by these objectives.
Referring to the uncertainties present in global energy markets, Misri said India is also playing an important role in maintaining price stability. “India is not only one of the world’s largest energy consumers but also plays an important role as a stabilizing factor in global energy markets,” he said.
He reiterated that the key pillars of India’s energy policy are adequate availability, fair prices and reliability of supply.
The Foreign Secretary also said that decisions related to energy imports are taken by oil companies, both public and private, and these decisions are taken as per the prevailing market conditions.
“I can say with full conviction and confidence that whether it is the government or our business institutions, all decisions are guided by national interests,” Misri said.
Meanwhile, Petroleum and Natural Gas Minister Hardeep Singh Puri told the Rajya Sabha that India’s strategic petroleum reserves are capable of meeting needs for up to 74 days in case of any disruption in global supplies. Indian Strategic Petroleum Reserves Limited (ISPRL) currently has about 40.94 lakh metric tonnes of crude oil stored, which is about 77 percent of the total storage capacity.
Puri also pointed out that India is the world’s third largest crude oil consumer and fourth largest refiner. The country’s refining capacity has increased from 260 million metric tons per year to 320 million metric tons per year.
–IANS
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