IPA Newspack
  • Home
  • now
  • politics
  • business
  • markets

IPA /

Markets

Markets

Govt may dip into strategic oil reserves to calm prices

The government is committed to supporting initiatives for releases from the Strategic Petroleum Reserves for mitigating market volatility and calming the rise in global crude oil prices, the finance ministry said on Monday.

At the same time, it’s closely monitoring global price movements of commodities like crude oil, gas, edible oil and fertiliser, and their impact on trade and the economy in the wake of the Ukraine crisis, minister of state for finance Pankaj Chaudhary said in the Lok Sabha on Monday.

Even before the Russia-Ukraine conflict, in a coordinated move with other large oil consumers such as the US, China, Japan and South Korea, India had in November 2021 decided to release 5 million barrels of crude oil from its strategic petroleum reserve. The global effort was then aimed at undermining the bargaining power of the Opec+ producers, who intended to keep oil prices elevated through supply curbs. India’s release was equivalent of about 12.8% of its strategic oil reserves and 9.5 days of its requirement.

“The geopolitical tension between Russia and Ukraine has led to global supply disruptions, resulting in steep increase in global commodity prices,” Chaudhary said.

Brent crude oil prices on Monday eased on concerns about a potential drop in Chinese demand following lockdown measures in financial hub Shanghai to control a Covid surge. Still, at about $114 a barrel, Brent crude futures were trading way above the level witnessed before the Russian invasion of Ukraine over a month ago.

Moreover, to ensure the country’s energy security and mitigate the risk of dependence on crude oil from a single region, state-run oil companies have diversified their petroleum basket and are procuring crude oil from countries located in various geographical locations. These include West Asia, Africa, North America and South America, Chaudhary told the Lok Sabha.

Last week, finance minister Nirmala Sitharaman had attributed the rise in fuel prices to the ripple effects of the Ukraine war. The crisis has, in fact, adversely affected all the countries, she added.

Oil marketing companies, having kept a freeze on price hikes for about five months in the build-up to the crucial state elections, has increased the rates of petrol and diesel in small doses of about 80 paise per litre for a fourth time in the past one week.

With inputs form India Infoline

IPA Special

West Unlikely To Stop Fuelling Russia-Ukraine War Soon

February 6, 2023
IPA Special

BJP’s Reverses In Legislative Council Elections In Nagpur Is A Bad Omen For Ruling Alliance

February 6, 2023
IPA Special

Shocks That The Indian Economy Faced Since 2014

February 6, 2023
IPA Special

Nitish Kumar Is A Victim Of Trust Deficit Amongst His Coalition Leaders

February 6, 2023
Happening Now

Parliament adjourned amid Opposition protest on Adani row

February 6, 2023
Politics

Delhi Assembly fails to elect mayor even on third attempt

February 6, 2023
Politics

Another jolt to Bengal BJP as MLA joins Trinamool

February 6, 2023
Politics

Mann govt faces heat over sacrilege case

February 6, 2023
Politics

AAP to contest all seats in MP assembly elections

February 5, 2023
Politics

New turn in UP’s OBC politics as Maurya backs caste census

February 5, 2023
Happening Now

Video shows Chinese balloon being downed by US missile

February 5, 2023
Politics

Assam CM says child marriage crackdown to continue

February 5, 2023
IPA Special

BJY Has Improved Rahul’s Image To The Congress Supporters But That Is Not Enough

February 4, 2023
IPA Special

China Reopening Changing Market Dynamics Impacting Importers

February 4, 2023
IPA Special

Union Budget 2023-24: Kerala Again Cold Shouldered

February 4, 2023
IPA Special

2023-24 Budget Keeps Key Issues Of Indian Workers Unaddressed

February 4, 2023
IPA Special

Modi Baiter Trinamool Spokesperson Saket Gokhale Is In ED Net

February 4, 2023
IPA Special

Israelis And Palestinians Do What They Do Best, But For Wrong Reasons

February 4, 2023
IPA Special

‘Let It Be Morning,’ A Stunningly Powerful Almost All-Palestinian Israeli Film

February 4, 2023
Happening Now

RBI says banking sector stable amid Adani stocks rout

February 4, 2023

An appeal

The legacy of IPA, founded by Nikhil Chakravartty, the doyen of journalism in India, to keep the flag of independent media flying high, is facing the threat of extinction due to the effect of the Covid pandemic. Only an emergency funding can avert such an eventuality. We appeal to all those who believe in the freedom of expression to contribute to this noble cause.
Click here to learn more

Share

Reply

  • 0
More on IPA

India’s import bill for edible oil likely to jump by $2 billion

April 8, 2022 9:34 am | IPA Staff

India’s import bill for edible oils is slated to jump by $2 billion, following the sharp rise in prices after Russian attack on Ukraine. Supply...

Markets

Russia offers India oil at $30-35 a barrel

April 1, 2022 10:54 am | IPA Staff

Sanctions-hit Russia is offering hefty discounts to India for direct oil purchases, which will make it attractive for New Delhi to get into contracts with...

Markets

Govt may dip into strategic oil reserves to calm prices

March 29, 2022 11:49 am | IPA Staff

The government is committed to supporting initiatives for releases from the Strategic Petroleum Reserves for mitigating market volatility and calming the rise in global crude...

Markets

Bulk diesel price rise wrecks state transport corporations

March 22, 2022 10:58 am | IPA Staff

Road transport corporations (RTCs), which are run by state governments, are staring at big losses and an undermining of their operational viability owing to last...

Markets

India’s import bill for edible oil likely to jump by $2 billion

in Markets
Apr 8, 2022   ·  

Russia offers India oil at $30-35 a barrel

in Markets
Apr 1, 2022   ·  

Bulk diesel price rise wrecks state transport corporations

in Markets
Mar 22, 2022   ·  
Follow us on
Up Next: Simultaneous Elections Will Be Two Steps Back For Democracy In India
©2020 -2021 India Press Agency, All Rights Reserved
Newspack by India Press Agency
logo
  • Home
  • now
  • politics
  • business
  • markets