India wants fixed price element for crude purchases

India wants fixed price element for crude purchases

Delhi, 20 October (Argus) — India, the world's third-biggest energy consumer, wants oil producers to consider supplying crude under longer-term contracts at a fixed rate to help shield consumer countries from price volatility.

At the CERAWeek India Energy Forum today, oil ministry secretary Tarun Kapoor suggested that India's state-owned refiner IOC could purchase as much as 70pc of its crude import requirements under such contracts.

India, which imported 3.9mn b/d of crude and condensate last month, has seen its oil import costs rise sharply this year on the back of higher crude prices. The country is pushing for the Opec+ coalition to do more to lower prices, and the government plans to ask India's state-run and private-sector refiners to negotiate jointly with the group on achieving this.