OPEC to stop charging premium from its Asian buyers

Vastavam web:  India today once again asked oil cartel OPEC to stop charging premium from its Asian buyers saying oil producers should not subsidize others at the expense of countries like India.Reiterating New Delhi’s decade-old demand, Oil Minister Dharmendra Pradhan said OPEC should work towards “responsible price”, which would allow major consuming countries to provide energy to the common people.Higher prices will force them to go for alternate forms of energy which would be slowing down the demand of crude oil, he said in his address at the 2nd high-level meeting of the OPEC-India Energy Dialogue here.
The issue of Asian Premium still continues to exist. Our companies pay billions of dollars on this account. They still don’t understand the rationale of this cross subsidization of tariff between West and the East,” he said. Pradhan’s predecessors, particularly Mani Shankar Aiyar, had in past vociferously raised the issue of OPEC members charging the so-called premium from Asian buyers but the cartel has refused to act on the issue.OPEC, Pradhan said, should treat Asian markets as primary markets. “It’s strategy of incentivizing western markets in the past did not result in retaining those markets.”
Pradhan said India is growing consistently at over 7 per cent and the growth rate in the energy sector is 7-8 per cent, which is double the rate of many developed markets.With increasing demand and consumption, India is increasing imports and also its refining capacity.”Today, our annual refining capacity is 235 million tonnes of which 194 million tonnes of products are consumed domestically, while the rest is exported. At the same time our energy consumption is expected to double in the next 15 years.