New Delhi: In an effort to provide relief from rising petrol prices, the Modi government has revealed plans to purchase crude oil from Venezuela. Union Petroleum Minister Hardeep Singh Puri announced this new initiative, aimed at reducing the cost of petrol.
After a three-year hiatus in purchasing oil from Venezuela, India is considering this option as a result of recent sanctions relief granted by the United States. The country’s refineries, including Reliance Industries (RIL), Indian Oil Corporation (IOC), and HPCL-Mittal Energy (HMEL), have already booked Venezuelan oil cargoes. Bharat Petroleum Corporation Limited (BPCL) is also exploring the possibility of buying oil from the Latin American nation.
According to media reports, India last made purchases from Venezuela in November 2020. Venezuela had previously ranked as the country’s fifth-largest oil supplier in 2019, providing approximately 16 million tonnes of crude oil to Indian refiners. As a member of the Organization of the Petroleum Exporting Countries (OPEC), Venezuela holds the largest oil reserves in the world.
India, as the third-largest oil consumer globally, relies on imports for more than 85% of its needs. This strategic move to diversify oil sources and alleviate petrol prices is expected to benefit consumers in the country. The government’s plan to purchase crude oil from Venezuela signifies its commitment to ensuring energy security and providing relief to its citizens amidst rising energy costs.
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