Oil reserves build-up saves India Rs 5,000 crore

Swift action by the petroleum ministry has resulted int filling India’s 5.33 million metric tonnes (MMTs), or 39 million barrels, of strategic oil reserves to the brim at an average price of $25 per barrel before international oil prices started heading north, saving about Rs 5,000 crore of public money, two government officials said.

Even domestic refiners could stock 25 MMTs or about 183 million barrels of cheaper crude and petroleum products in their storage tanks at a similar price, the officials said, requesting anonymity.Petroleum and steel minister Dharmendra Pradhan confirmed the development. “We took advantage of global crude oil price crash since the beginning of March this year for filling the unfilled strategic petroleum reserves of 16 million barrels in all the three locations —Visakhapatnam, Mangalore and Padur,” he said.

“Beyond this strategic storage of crude oil, Indian oil marketing companies have procured at March/April prices of crude oil of about 8.5 million tonnes [62 million barrels], which is in the floating storage on vessels,” he said.

hindustan times
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