India makes contingency plans for crude oil supplies

Monday, 10 March 2003, 20:30 IST
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NEW DELHI: India has sufficient stocks of crude oil and petroleum products for two months and has made contingency plans to ensure supplies in the event of a war in the Middle East. "We have enough crude oil and petroleum products for two months and have made contingency arrangements to ensure supplies from countries not in the war zone," Petroleum Minister Ram Naik said at a press conference on Friday. While the oil refining companies usually hold inventories for 15 days, they have all tanked up to capacity, given the uncertain situation in the Middle East, petroleum ministry officials said. The current stocks are around 20 million tonnes of crude and petroleum products. Given the requirements of the Indian Air Force, large stocks of aviation turbine fuel were also being maintained, the officials said. "The supply is sufficient for 60 days and given the domestic production, we are comfortably placed for up to 80 days," they said. Asked about the price at which the deals had been clinched, Naik said: "The orders have been placed to ensure supplies are maintained. They have been done at competitive rates based on commercial judgment." The continuing volatility of crude prices with Brent crude at $34 per barrel and the Indian basket of crude averaging $31.99, against $20 per barrel in February and March last year was causing concern, the minister said. He, however, ruled out any reduction in imports to curb the country's oil bill. "We cannot reduce imports as this would work against the interest of the industries," Naik explained. The surge in international oil prices had seen India's oil import bill jumping by 22 percent to $14.34 billion during the first ten months of the current fiscal. India depends on imports for 70 percent of its requirement of around 112 million tonnes and has imported about 84 million tonnes in fiscal 2002-03 that ends March 31.
Source: IANS
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