India saves Rs 5,000 crores by strategically filling its Crude Oil reserves

New Delhi: – India filled up its ‘Strategic Oil Storages’, in April, taking advantage of the low crude oil rates, on the international level. Union Petroleum Minister Dharmendra Pradhan informed that India saved nearly Rs 5,000 crores in these transactions. He was answering a question in the Rajya Sabha.  

In January, the crude oil rates were around $60 per barrel. In April and May, the rates slid to $19 per barrel, in view of the Coronavirus crisis. India, a major importer of crude oil, took advantage of the situation. India purchased 1.67 crore barrels of crude oil from Saudi Arabia, Iraq and the United Arab Emirates.  

India has stored nearly 53 lakh tonnes of barrels of crude oil, in the underground storages, at Vishakhapatnam, Mangaluru and Padur in Andhra Pradesh. Pradhan said that this would come handy in a crisis. Pradhan expressed satisfaction saying that India saved Rs 5,000 crores as the purchases of crude were made when the oil rates were meagre.   

Meanwhile, it is being said that oil stock sufficient for 87 days has been made. As per the standard set by the International Energy Agency, member countries should have an oil stock to last 90 days. India has reached closer to the prescribed standard.   

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