Centre Calls On OPEC To Increase Supplies To Rein In Surging Crude Oil Prices

Amid rising fuel prices across India, the Government has yet again called on the Organisation of Petroleum Exporting Countries (OPEC) to increase supplies to rein in the surging prices, reports Economic Times.

Union Minister for Petroleum & Natural Gas Dharmendra Pradhan flagged the concerns over increasing crude oil prices and their impact on consumers and the economic recovery to OPEC's Secretary-General Mohammed Sanusi Barkindo.

Pradhan underscored that high crude prices were adding significant inflationary pressure and reiterated the request of phasing out production cuts. He emphasised that crude prices should remain within a reasonable band and that it will be in the collective interests of both consumers and producers and will encourage a consumption-led recovery.

It should be noted that OPEC had ignored India's similar call three months ago. Then, the Saudi Arabian Oil Minister had gone on to ask New Delhi to use oil it bought cheaply last year to deal with higher prices. Prices have since gained about $7 to $75 a barrel, helping set new records in domestic fuel prices.