India, US, China will release oil together to control prices: 10 facts

India has decided to release 5 million barrels of crude oil to reduce rising prices

India has decided to release 5 million barrels of crude oil from its Strategic Petroleum Reserves (SPR) along with countries like the US, Japan, China, the UK and the Republic of Korea to bring down prices.

Let us find out why the government decided to take this step:

  1. In an official statement, the petroleum ministry said the crude oil release would be in consultation with these countries, which are also major global energy consumers. India has reserves of about 26.5 million barrels of oil.

  2. The decision came after the US urged these countries to release crude from their respective reserves to bring down the global crude oil prices.

  3. The White House said on Tuesday that the United States would withdraw 50 million barrels of crude from its strategic petroleum reserve to help cool prices.

  4. Senior officials in the Biden administration said the crude oil releases were being carried out by China, India, South Korea, Japan and Britain in coordination with other releases from strategic reserves.

  5. “India firmly believes that the pricing of liquid hydrocarbons should be fair, responsible and determined by market forces. India has expressed concern over oil-producing countries artificially adjusting the supply of oil below the level of demand, leading to rising prices and negative consequences,” the petroleum ministry said.

  6. To control the inflationary trend of fuel prices, excise duty on petrol and diesel was cut by Rs 5 and Rs 10 respectively on November 3, 2021, with effect from November 4.

  7. Earlier on November 22, Reuters reported that Japanese and Indian officials are working with the United States and other major economies on ways to release national crude oil reserves to push prices down.

  8. US President Joe Biden has asked China, India, Britain, South Korea and Japan to issue a coordinated oil stockpile as US gasoline prices rise and their approval ratings lower ahead of next year’s mid-term congressional elections. She goes.

  9. The request came after the US government was unable to persuade OPEC+ to pump more oil with major producers arguing that the world was not short of crude, Reuters had reported.

  10. There is no specific timeline available as to when countries will start releasing crude from their respective strategic reserves. South Korea said it had agreed to participate, but did not give a volume. Japanese media said Tokyo would announce its plans on Wednesday. Britain had no immediate comment, Reuters said.

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