PM urges crude oil suppliers to review payment terms

Prime Minister Narendra Modi urged global oil suppliers on Monday to review payment terms in order to give relief to the country which is struggling with a weakening currency.

Modi was speaking to oil ministers and CEOs of oil majors in New Delhi. “He requested for review of payment terms so as to provide temporary relief to the local currency,” the statement quoted him as saying.

India, which imports more than 80 percent of its oil imports, has been under pressure as crude oil prices have surged and its rupee currency has lost value. “Prime Minister Modi made a strong case for a partnership between the producers and consumers in the oil market as it exists in other markets,” it said. He appealed to the oil producers to channel their investible surplus to pursue commercial exploitation in the oil sector in developing countries, it said.

Modi highlighted the significant positioning of India in the oil and gas market and said the oil market was producer driven and quantity and prices were determined by oil producing countries.

"Though there is enough production, the unique features of marketing in the oil sector have pushed up the oil prices. The prime minister made a strong case for a partnership between the producers and consumers in the oil market, as it exists in other markets. This will help stabilise the global economy which is on path of recovery," the statement said.