Petroleum minister Murli Deora on Tuesday voiced concerns over the rising international oil prices saying the surge posed danger of economic dislocation to developing countries.
?This (the rise in oil prices) is a matter of grave concern for all developing countries due to the imminent danger of economic dislocation and its cascading effect on both oil producing and consuming countries,? Deora said while addressing the first India-Africa hydrocarbon conference in here on Tuesday.
India, which imports 73% of its oil needs, has been hit by the surge in global crude oil prices that touched $96-a-barrel last week. The Indian basket of crude oil touched an all time high of $88.26 per barrel on Monday.
State-run fuel retailers Indian Oil, Bharat Petroleum and Hindustan Petroleum are currently losing Rs 240 crore per day on selling petrol, diesel, domestic LPG and PDS kerosene as the government has not allowed them to raise retail prices in line with the surge in cost.
?As legitimate energy demands of developing countries grow in order to fuel their economic growth, the spare capacity across the global supply chain has been diminishing feed speculative interests in the oil market,? he said at the conference jointly organised by petroleum ministry and Ficci.
Deora said the greatest challenge today was to provide the mankind with its rapidly expanding energy needs in a cost effective and environment-friendly manner. ?Under these trying times, the spectacular oil reserves of Africa are gratifying,? he said seeking greater cooperation with the India and energy-rich African nations.
India is seeking oil and gas fields in nations like Nigeria, Sudan and Egypt to bridge the energy deficit it faces. ?We are committed to ensuring our billion strong nation affordable access to energy. To insulate our economy from the vagaries of the international oil market and inflationary pressures that could arise from transferring the entire price rise to end-users, the Indian government and the national oil companies are absorbing over 85% of the difference between cost of import and domestic oil prices,? Deora said.
Deora will meet Prime Minister Manmohan Singh on Wednesday to find a solution to the crisis created by rise in global oil prices. Among the options being explored are a marginal increase in petrol and diesel prices coupled with excise duty cut on auto fuels and customs duty reduction on crude oil.
The minister said India was seeking closer cooperation with African nations. ?For our mutual benefit, I believe we should institutionalise cooperation between our countries at three levels government to government, company/trade body level and research institution level.?