Rejecting US and European sanctions against Iran, oil minister S Jaipal Reddy said, “We respect UN sanctions but will not honour any other sanction. We have cordial relations with Iran and we continue to import oil from them”
New Delhi: India is not facing any external pressure on buying crude oil from Iran and will abide by UN sanctions only, not those imposed by any bloc of nations, reports PTI quoting oil minister S Jaipal Reddy.
Speaking at the meeting of the Parliamentary Consultative Committee here, he said there is “no outside pressure in dealing with Iran”.
Rejecting US and European sanctions against Iran, he said, “We respect UN sanctions but will not honour any other sanction.
“We have cordial relations with Iran and we continue to import oil from them.”
The US has imposed sanctions that deny access to the US financial system to any foreign bank that conducts business with the central bank of Iran.
Besides, European Union has agreed to ban oil imports from Iran starting 1st July as part of measures to ratchet up the pressure on the Persian Gulf nation's nuclear programme.
Mr Reddy rejected US President Barack Obama’s statement that demand in China and India was responsible for spiralling international oil prices, and said that India’s per capita consumption at 442 kg of oil equivalent was much lower than world average of 1,715 kg.
Geo-political reasons are to be blamed for spike in global oil prices, he said.
“India is currently world’s fourth largest consumer of energy accounting for 4.4% of world’s annual energy consumption. USA, China and Russian federation are the top three energy consumers. Almost 40% of the primary energy consumption is by USA and China,” Mr Reddy said.
The energy sector has witnessed major volatility in crude oil prices, scarcity of services and economic meltdown globally in the past few years. “Global demand for energy is oscillating in tandem with the economic condition of the world,” he said.
Economics in the energy sector is also being affected by the dynamics in global political scenario, and economic sanctions regime leaving an adverse impact on the demand- supply situation.
India is one of the fastest growing economies in the world. Presently, the domestic energy supplies are limited and the import dependence is as high as 80% for crude oil and 25% in case of natural gas.
“The situation may not change much in the 12th Plan period as the demand for oil and gas is increasing. The share of oil and gas in Indian energy basket is about 40%.
“With the projected demand and supply gap, it is imperative for us to enhance energy security for the country for which intense efforts in exploration activities in India as well as abroad are being made,” Mr Reddy said.
Of the three loan pacts signed with the ADB, $200 million has been allocated for Madhya Pradesh, $100 million for Gujarat and $50 million has been set aside for Assam
New Delhi: The government on Monday signed three loan agreements totalling $350 million with multilateral funding agency Asian Development Bank (ADB), reports PTI.
Of this, $200 million loan will help the Madhya Pradesh government to provide 24-hour electricity to rural households, a finance ministry statement said.
“The investment programme will help ensure a constant, reliable supply of electricity to more than 2.6 million households, as well as providing new power connections to 1.3 million homes,” ADB India resident mission country director Hun Kim said.
Besides, a $100 million loan arrangement was signed to develop a solar power transmission system in Gujarat.
The loan would help develop a transmission system that will distribute 500 MW of solar power from the Charanka Solar Park in Gujarat.
“The project will create job opportunities, improve social services and contribute to poverty reduction locally.
It will also support power distribution companies in Gujarat and other Indian power utilities to meet part of their clean energy procurement obligations through solar energy,” the statement said.
Also a $50 million loan agreement was signed for enhancing electricity transmission and distribution capacity in Assam.
“This loan will help strengthen the state's transmission and distribution system, and reduce technical and commercial losses,” joint secretary in the Department of Economic Affairs Prabodh Saxena said.
Petrol and possibly diesel prices are likely to be hiked by Rs2-Rs4 per litre once assembly elections in five states, including Uttar Pradesh, are completed this week
New Delhi: Petrol and possibly diesel prices are likely to be hiked by Rs2-Rs4 per litre once assembly elections in five states, including Uttar Pradesh, are completed this week, reports PTI.
State-owned oil companies are losing about Rs4 per litre on petrol, industry officials said.
Oil firms had last revised petrol prices on 1st December after which rates have not been changed because of the assembly elections.
The industry, they said, has lost about Rs900 crore since the last revision which was done at international gasoline price (the benchmark for deciding domestic retail rates) was $109 per barrel. Gasoline rates have since risen to over $125 a barrel.
“In all probability, petrol price will be increased after assembly polls,” an official said.
Another official said diesel rates, too, may be hiked before the Budget session of Parliament that begins on 12th March.
State-owned oil firms lose Rs12,77 per litre on diesel.
They also lose Rs30.21 a litre on kerosene and Rs378 per 14.2kg domestic LPG cylinder.
Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation are losing over Rs410 crore per day on sale of diesel, domestic LPG and kerosene.
Officials said the call on raising diesel prices would be taken by an Empowered Group of Minister (EGoM) as and when it meets while petrol rates would be revised by oil firms themselves.
Petrol price were freed from government control in June 2010 but rates have not moved in tandem with imported cost.
While petrol price were last revised on 1st December when they were cut by Rs0.78 per litre to Rs65.64 per litre in Delhi, diesel currently costs Rs40.91 a litre.