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The price of crude oil is being driven by sentiments that pose a challenge for India according to Minister for Petroleum and Natural Gas, Dharmendra Pradhan.
Speaking with reporters at the sidelines of the India Energy Forum by CERAWeek, Pradhan said, “The issue is not shortfall, the issue is now sentiment. As on today, OPEC has promised in the month of June, there will be an additional production of one million barrels per day after their decision of capping.”
“But according to our information, though Russia and Saudi, the major two contributors of OPEC have increased their production, some of the countries are lagging behind,” he said.
“With that also, there is no issue of availability of crude oil today. But due to some geo-political instability in different parts of the world, there is a sentimental issue. So that is the primary challenge,” he added.
Responding to concerns raised by BP on the move to artificially suppress auto fuel prices, Pradhan said, “Government has no business to interfere in the pricing mechanism of petroleum products. The day to day price mechanism was developed by oil companies. The government has a role in the tax and we have done that in the last week.”
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