Washington – The Organisation of the Petroleum Exporting Countries (OPEC+) has decided to cut fuel production when international fuel prices are rising. OPEC+ announced this a few days ago. After this, it became clear that the price of fuel would increase further. Union Finance Minister Nirmala Sitharaman has said that in such a situation, India will look for cheaper fuel alternatives for its people. Furthermore, the finance minister of India has warned that India will not entertain the ‘price cap’ imposed by the US and European countries on Russia’s fuel, as it would result in buying more expensive fuel for its 1.4 billion citizens, which would be unaffordable.
In an interview, Finance Minister Sitharaman, who is currently visiting the US, clearly stated India’s position regarding fuel. The conflict in Ukraine and the subsequent decision by OPEC+ to cut fuel production are two things that have raised India’s concerns. In such a situation, the US and European countries have announced a cap on purchasing Russian fuel at a maximum rate of $60 per barrel. India refused to comply with this price cap. Other countries also continued to buy fuel from Russia at higher rates.
Moreover, Russia will not sell fuel to India at the price cap. So India will have to buy more expensive fuel. Sitharaman pointed out that India’s 1.4 billion people cannot afford it, so India has to buy fuel from Russia at discounted rates. Not only this, Finance Minister Sitharaman told the Western countries that there is a need to look at this fuel issue from a human perspective. ‘The consequences of the conflict in Ukraine cannot be imposed on poor countries that are part of the Global South,’ she said.
Meanwhile, India imports about 80 per cent of its fuel demand. Therefore, if fuel is purchased at a high rate, it will have an adverse effect on the Indian economy. In the interview, the Finance Minister said that India has to make its own fuel decisions to prevent the country’s economic math collapse.
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