Tackling fuel prices | India to counter the monopoly of OPEC countries by diplomatic routes: Report

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In a fresh set of developments, India is looking to cut the oil prices by resuming imports from oil exporters such as Venezuela and Iran.

According to a report in Hindustan Times, crude prices were soaring because of the increase in demand after the lockdown was lifted. But the OPEC countries which are major oil exporters have still kept the supply restricted which is the major concern for New Delhi and the major reason behind record-breaking domestic fuel prices.

India being the third-biggest oil consumer, has urged major oil exporters to ease the supply situation as the economy is on the recovery pace but surging fuel prices are hurting this pace.

In order to sideline the problem creators of this crisis, the Indian government is now looking to diplomatically handle the rising crude prices.

Imports from Iran were ceased after the Trump government had slapped curbs on Iran. With the change in the presidency in the US and Biden occupying the president chair in the White House, New Delhi could now look to again start importing oil from Tehran.

In 2018-19, India imported around 23.5 million tonnes of Iranian crude oil which roughly makes 80% of India’s oil demand. Biden’s presidency may make Iran the biggest gainer in the current scenario and India would also spare no effort to maximise this opportunity by increasing its exports to Iran.

To counter the monopoly of oil cartels, India is now planning to join hands with major oil-importing countries like South Korea, Japan and China and finding the best possible alternative.

Importing oil from Iran and Venezuela will be the first step in this direction and it will eventually put some pressure on the OPEC countries to stabilise the production cuts.