Will look at alternatives if shortage isn’t fixed: Pradhan

India will look at alternative energy if the oil producing countries do not fix the supply imbalance which has led to a rise in crude oil prices, said Petroleum Minister Dharmendra Pradhan.

At the CERAWEEK conference by IHS Markit, Pradhan said an artificial supply shortage has been created by the Organisation of the Petroleum Exporting Countries (Opec) and its allies at a time when energy demand is resurging in emerging economies.

“During May 2020, demand (for fuels) had collapsed in the market and a country like India was supportive of production cuts in those days. The producers, especially Opec, had assured us that by

“THE PRODUCERS, ESPECIALLY OPEC, HAD ASSURED US THAT BY THE BEGINNING OF 2021, DEMAND WILL BE BACK AND PRODUCTION WILL BE AS USUAL ... BUT I AM SORRY TO SAY, PRODUCTION IS YET TO BE NORMAL” DHARMENDRA PRADHAN

Petroleum minister

the beginning of 2021, demand will be back and production will be as usual,” Pradhan said.

“But I am sorry to say, production is yet to be normal,” he said, adding that this is happening when there is a demand normalcy around the globe, especially in Asia.

“If there is a demand in emerging economies, and you don’t supply properly, (this is leading to) an artificial gap between demand and supply, there is a price rise.”

Brent crude prices have recovered to $63.58 a barrel on Thursday after rising from $ 51.09 a barrel at the beginning of the year.

“This may suit some of our friends, but not emerging countries like India, where fiscal scope is very challenging and we have to spend more on development projects. We need a reasonable and responsible price of energy. If someone will push me, then I’ll be cornered and I will look towards a new path: alternative energy,” Pradhan said.

Advocating price stabilisation, he said: “For balanced growth and for the benefit of all players, the price should be where we can purchase without affecting our treasury.”

Pradhan said India will continue to have cordial terms with oil producing nations but business with them should be at equal terms.

About the new administration in the US, he said India and the US would do more energy business under the Joe Biden government.