Narendra Modi Gives the Reason for High Fuel Prices, Says Unique Features of Marketing Pushed Up Oil Rates

Team Latestly
The Prime Minister noted that the oil market is producer driven and both the quantity and prices are determined by the oil-producing countries. He further noted that though there is enough production, the unique features of marketing in the oil sector have pushed up the oil prices.

New Delhi, October 15: Amid a continuous spike in fuel prices in India, Prime Minister Narendra Modi on Monday met chief executives of top global and Indian oil and gas companies. The CEOs and Experts from the Oil and Gas sector, from both India and abroad, met the Prime Minister and discussed a wide range of issues including investment in oil and gas exploration, emerging energy scenario and more.

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The Prime Minister noted that the oil market is producer driven and both the quantity and prices are determined by the oil-producing countries. He further noted that though there is enough production, the unique features of marketing in the oil sector have pushed up the oil prices. Fuel Prices Today: Delhi and Mumbai Continue to Witness Hike in Petrol and Diesel Rates. 


The Prime Minister also highlighted that consuming countries, due to rising crude oil prices, face many other economic challenges including serious resource crunch. He said the cooperation of oil-producing countries would be very critical to bridging this gap. Petrol And Diesel Prices Down by Rs 2.50 Per Litre as Centre Cuts Excise Duty by Rs 1.50 Per Litre; OMCs to Reduce Fuel Rate by Re 1 Per Litre.

The third annual meeting today also deliberated on ways to revive investment in oil and gas exploration and production. The global CEOs and experts appreciated steps taken by Government over the last 4 years, for ease of doing business and specifically in the energy sector in India. During the meet, the experts made special mention of India’s competitive ranking from an upstream investment point of view which has gone up from 56 to 44.

The meeting, coordinated by the NITI Aayog, focused on challenges posed by volatile oil prices and the US sanctions on Iran. Union Finance Minister Arun Jaitley and Dharmendra Pradhan, Vice-Chairman NITI Aayog Dr. Rajiv Kumar were also present at the interaction.

The Prime Minister's first meeting was on 5th January, 2016, where suggestions for reforming natural gas prices were made. More than a year later, the government allowed higher natural gas price for yet-to-be-produced fields in difficult areas like the deep sea.