Coodinated Approach: 'India to Liaise with China on OPEC's 'Asian Premium' Issue

Union Petroleum Minister Mr. Dharmendra Pradhan has said India will coordinate with China and other Asian countries to voice against the “Asian Premium” being charged by the Organisation of the Petroleum Exporting Countries (OPEC).

Taking the initiative forward, the minister said, IOC Chairman Mr. Sanjiv Singh will coordinate with the head of China National Petroleum Corporation (CNPC) to chalk out the strategy that would result in getting better price from OPEC countries.

“India or China, Japan and Korea- Asian counties are the primary consumers of the energy market today. Why do we have to give Asian premium? That is the issue we are raising and when we met on the sidelines of International Energy Forum with CNPC Chairman, I proposed to coordinate with China and all these consuming countries in a bigger way,” Mr. Pradhan informed.

“We have nominated our IOC Chairman Sanjiv Singh to coordinate on behalf of Indian energy industry with other major players and specifically with his Chinese counterpart CNPC Chairman Wang Yalin. There will be meetings, there will be consensus to put a point of view in front of the oil producing countries (OPEC) that we must get reasonable and responsible price for our consumption,” the minister said.

‘Asian Premium’ is the extra charge being collected by OPEC countries from Asian countries when selling oil, and India has been voicing its dissent against this practice.India sources about 86 per cent of crude oil, 75 per cent of natural gas and 95 per cent of LPG from OPEC member nations.