Government agrees to release 5 million barrels of crude oil from strategic petroleum reserves: Rameswar Teli
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
Union Minister of State for Petroleum and Natural Gas Rameswar Teli has said that the government has agreed to release 5 million barrels of crude oil from its strategic petroleum reserves in consultation with other major global energy consumers including the USA, People's Republic of China, Japan and the Republic of Korea, in order to provide relief to citizens.
The minister has stated the domestic price of crude is linked to international benchmarks of crude price. He said these benchmarks get affected by many factors including supply and demand, futures’ trading, the impact of the covid scenario and geopolitical situation. Linear co-relation between pricing and any one of these factors in isolation is indeterminable.
He further said that the government has been consistently reviewing the high petroleum and diesel prices domestically. With a view to controlling inflationary pressures, government had reduced the 'central excise duty' on petrol and diesel by Rs 5/litre and Rs 10/litre respectively on November 3, 2021. It was followed by a reduction in VAT on fuel by many State Governments.
