Categories: Business

India takes advantage of cheap crude oil, 30 million tonnes of oil reserves ready

India uses low crude prices to stockpile 32 million tonnes of oil

new Delhi. Petroleum Minister Dharmendra Pradhan said that India has managed to store 32 million tonnes of crude oil in its underground oil deposits, tanks, pipelines and ships, taking advantage of the reduced price of crude oil in the global market. India is the third largest oil importing country in the world.

India meets 85 per cent of its imports from petroleum products to meet its needs. In a Facebook conversation on mitigating the impact of the challenges during the Kovid-19 era, Pradhan said that the imposition of a lockdown to curb the effects of the corona virus suddenly caused a worldwide demand for oil. This in itself is an unprecedented situation in the energy sector. Never seen such a situation before.

He said, due to this situation, the prices of crude oil in the world market kept falling and at one time there was a time when the prices in the US market went into negative range. Pradhan said that India is taking advantage of this situation to replenish its oil reserves so that it can be used later.

He said that the purchase of crude oil from Saudi Arabia, UAE and Iraq has helped to fill 53.30 lakh tonnes of underground strategic reserves, while 70 million tonnes of oil is kept in floating vessels. Similarly, 250 million tonnes of oil has been loaded in the country's geographical location depots and tanks, refinery pipelines and product tanks.

Pradhan said that this stored oil is equivalent to 20 percent of the country's total demand. India imports 85 percent of its total oil requirement. Its oil refineries hold 65 days of crude oil reserves.

This post was published on May 5, 2020 8:11 am

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