India To Release 5 Million Barrels Of Crude Oil From Strategic Reserves To Cool Prices

The country stores about 38 million barrels of crude oil in underground caverns at three locations on the east and west coast

Representational image | Photo: Getty

New Delhi: India plans to release about 5 million barrels of crude oil from its emergency stockpile in tandem with the US, Japan, and other major economies to cool prices, a top government official said on Tuesday, PTI reported.

The country stores about 38 million barrels of crude oil in underground caverns at three locations on the east and west coast.

Of this, about 5 million barrels will be released, starting as early as 7-10 days, said the official, who wished not to be named.

The stocks will be sold to Mangalore Refinery and Petrochemicals Ltd (MRPL) and Hindustan Petroleum Corp Ltd (HPCL) which are connected by pipeline to the strategic reserves.

“We may look at releasing more reserves later,” the official said, adding a formal announcement was expected later in the day.

The retail prices of petrol and diesel in the country, which are linked with daily fluctuations of their international benchmarks, have remained static since November 4, the day the Centre sharply reduced central levies on petrol and diesel by ₹5 a litre and ₹10, respectively.

Petrol price has been stable for the last 19 days at ₹103.97 per litre and diesel at ₹86.67 in Delhi.

The global crude prices, which has touched a three-year high level of over $85 a barrel on several occasions in the past one month, has now softened to below $80 barrel, providing some relief.

After the US and China, India is the third-largest consumer of crude oil.