Lok Sabha Question No. 1976 (UNSTARRED), answered on 2018-07-30
Subject: Forming of Oil Buyers Club
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shrirang Appa Barne, RABINDRA KUMAR JENA, PRITAM GOPINATH MUNDE, SHRIKANT EKNATH SHINDE, ANTO  ANTONY, KUNWAR PUSHPENDRA SINGH CHANDEL, ANANDRAO  ADSUL, C. N. JAYADEVAN, NAGARAJAN P., DHARMENDRA YADAV, GOPALAKRISHNAN CHINNARAJ, G. HARI

## LOK SABHA UNSTARRED QUESTION NO. 1976 TO BE ANSWERED ON 30 th  July, 2018

## Forming of Oil Buyers Club

## 1976. SHRI SHRIRANG APPA BARNE:

SHRI RABINDRA KUMAR JENA:

DR. PRITAM GOPINATH MUNDE:

DR. SHRIKANT EKNATH SHINDE:

SHRI ANTO ANTONY:

SHRI KUNWAR PUSHPENDRA SINGH CHANDEL:

SHRI ANANDRAO ADSUL:

SHRI C.N. JAYADEVAN:

SHRI P. NAGARAJAN:

SHRI DHARMENDRA YADAV:

DR. C. GOPALAKRISHNAN:

SHRI G. HARI:

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a) whether oil-related risks have risen over the past few months and with cartilisation of oil  producers with OPEC the prices have gone up exorbitantly and if so, the details thereof;
- (b) whether oil imports from Iran have declined in the months of June, 2018 as compared to June, 2017 and if so, the details thereof along with percentage of oil imports from Iran from January to July 2018, month-wise;
- (c) whether both India and China have expressed their interest in having a more active role in influencing the prices at which they import crude oil and if so, the details thereof along with action taken in this regard;
- (d)  whether  India  discussed  with  China the  possibility  of  forming  an  'oil  buyers'  club' that  can  negotiate  better  terms  with  sellers  as  well  as  getting  more  United  States  of America  crude  oil  to  cut  dominance  of  the  oil  block  and  if  so,  the  details  and  the outcome thereof; and
- (e) whether it would provide a better negotiation ground for two biggest Asian crude oil buyers to positively impact the oil selling price for Middle East crude oil to Asia and if so, the details thereof?

## ANSWER

## MINISTER OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

- (a) The crude oil price fluctuation is a frequent market phenomenon and the price of crude oil is  determined  by  many  factors,  including  demand  and  supply  in  the  global  market. Government continues to monitor prices of sensitive petroleum products.
- (b) Indian refineries imported 1.9 million metric tonne (MMT) crude oil from Iran in June 2017 and placed order for 2.82 MMT in June 2018. The details of crude oil imports, including from Iran during the period January to May 2018 are given below:
- (c) to (e): Meetings have been held between India and China, both at Ministerial and Company levels. During these meetings both sides expressed interest to cooperate and collaborate to deal  with  high  crude  oil  and  gas  prices,  including  through  increased  communication between companies to work towards control and reduce spikes in price.

| Crude oil imports during the year 2018 (In MMT)   | Crude oil imports during the year 2018 (In MMT)   | Crude oil imports during the year 2018 (In MMT)   | Crude oil imports during the year 2018 (In MMT)   | Crude oil imports during the year 2018 (In MMT)   | Crude oil imports during the year 2018 (In MMT)   |
|---------------------------------------------------|---------------------------------------------------|---------------------------------------------------|---------------------------------------------------|---------------------------------------------------|---------------------------------------------------|
|                                                   | January                                           | February                                          | March                                             | April                                             | May                                               |
| Total imports                                     | 20.1                                              | 17.6                                              | 18.4                                              | 17.3                                              | 19.9                                              |
| Import from Iran                                  | 1.9                                               | 2.0                                               | 2.2                                               | 2.9                                               | 3.2                                               |
| %age of imports from Iran                         | 9.5                                               | 11.2                                              | 11.8                                              | 16.5                                              | 16.0                                              |