News Brief | December 2014
Centre making efforts to reduce fuel import bill by Rs.10,000 crore
The government has turned to oil diplomacy to secure better fuel supply contracts, a move that industry officials say can cut India´s import bill by at least Rs 10,000 crore. The initiative comes at a time when the members of the Organization of the Petroleum Exporting Countries (OPEC) are battling for market share amid competition from new energy suppliers. Gulf countries too have shown heightened interest in investing in India, particularly after Narendra Modi became the prime minister. India depends heavily on term contracts with Middle East countries, which announce a monthly official selling price. Oil industry executives and officials say the country will save about Rs 9,000 crore a year for every $1 reduction in price.