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Amid concerns about the rising oil prices, India, the world's third-largest energy consumer, has warned that high oil prices will undermine global economic recovery, and nudged Saudi Arabia and other OPEC nations to work towards affordable and reliable supplies. Petrol and diesel prices have shot up to record highs across the country after relentless price increases since early May. Oil Minister Hardeep Singh Puri said ‘If energy prices remain high, global economic recovery will be undermined’. International oil prices had crashed to $19 per barrel in April last year as demand evaporated with most nations clamping lockdowns to control the spread of coronavirus. The demand recovered this year as vaccination against the infection revived economies world over. International benchmark Brent crude has since rallied to $84 per barrel.

He said ‘This has made fuel expensive and stoking fears of inflation’. Puri said India's oil import bill has climbed from $8.8 billion in June 2020 quarter to $24 billion this year because of a spike in global oil prices. He also said ‘India believes energy access has to be reliable, affordable and sustainable’, and added that economic recovery after a devastating pandemic has been fragile and it is further being threatened by high prices. India, which imports almost two-thirds of its oil needs from West Asia, has told crude oil producers, including the Organisation of Petroleum Exporting Countries (OPEC) that high oil prices will hasten the transition to alternate fuels and such rates will be counter-productive for the producers.

Recently, Puri had flagged the issue of high oil prices to Saudi Arabia, the UAE, Kuwait, Qatar, the US, Russia and Bahrain. He conveyed India's strong preference on responsible and reasonable pricing, which is mutually beneficial for consumers and producers. Puri said volatility in international prices is not just hurting India but also industrialised nations. While the world has begun the transition towards cleaner fuels such as electric-powered vehicles and hydrogen, most nations are still dependent on oil to fuel their economies. And high oil prices will hurt demand recovery. India is 85 per cent dependent on imports to meet its oil needs and relies on overseas shipments to meet 55 per cent of the gas needs.