India has no plans to join International Energy Agency (IEA) initiative to release strategic oil reserves, a government source said on Monday, as global oil prices surged amid supply fears due to the Iran conflict.
G7 finance ministers are due to meet to discuss the possible release of oil reserves to calm markets.
Oil prices surged above $119 a barrel on Monday, their highest since mid-2022, after some major producers cut supplies and fears of prolonged shipping disruptions due to the U.S.-Israeli war on Iran.
India is an associate member of IEA.
The source also said that India has no plans to restrict its fuel exports as it has ‘reasonably’ comfortable stocks of gasoline, gasoil and jet fuel.
READ MORE: Oil pares gains but still on track for record surge as Iran war escalates
In 2021, New Delhi joined efforts led by the US and released 5 million barrel of oil from its strategic petroleum reserves (SPRs).
India in a comfortable position, source says
India has SPRs at three locations with a capacity to hold 5.33 million metric ton of oil. The storage facilities, part of which is leased to Abu Dhabi National Oil Co, at present hold 4 million tons of oil, a separate government source said.
The source said India was in a comfortable position and had not exercised its first right of refusal to buy oil stored by ADNOC.
Refiners in India have purchased millions of barrels of prompt Russian oil cargoes stuck at sea since Washington last week granted New Delhi a 30-day waiver from sanctions to buy Russian oil loaded on vessels as of March 5.
Indian industries, including fertiliser producers, have been hit by a gas shortage.
The country hopes to get additional liquefied petroleum gas, used as a kitchen fuel, from the US and Canada, a second source said.
The nation has raised cooking gas prices for the first time in a year and asked refiners to maximise production of LPG.
American Dollar Exchange Rate