Indian government to draft new policy on spot crude imports by state refinersStaff writer ▼ | February 17, 2016
The Indian oil ministry will soon come up with a crude import policy for spot purchases by state-owned refiners, oil minister Dharmendra Pradhan told reporters.
Oil in Asia India imports close to 80% of its crude oil requirements
The long-standing issue is likely to be put forward soon for Cabinet approval, Pradhan said, giving state-owned refiners the flexibility to negotiate and take advantage of low prices.
"Government will come up with a new policy very soon -- broad policy guidelines. How smartly they procure is up to the companies," Pradhan said.
"A common trading desk can be set up by all state-owned refiners or they can choose their own system, and the ministry will set the broad policy," he added.
Last year in the wake of falling global crude prices, the oil ministry encouraged state-owned companies to increase their spot purchases to take advantage of market conditions.
State-owned refiners stepped up spot purchases which used to be normally 20% of their total requirement to up to 30%. ■