In some relief to consumers, the price of petrol and diesel could further be slashed as the government is planning to release five million or 50 lakh barrels of crude oil from its Strategic Petroleum Reserves. This comes after a high-level meeting of Minister of Petroleum and Natural Gas Hardeep Singh Puri with officials of oil marketing companies on Tuesday.

The decision comes amid US President Joe Biden on Tuesday announcing that the administration will tap the Strategic Petroleum Reserve as part of a global effort by energy-consuming nations to calm the rapid rise in fuel prices this year. The coordinated release between the US, India, China, Japan, Republic of Korea and the United Kingdom is the first such move of its kind. The United States will release 50 million barrels from the Strategic Petroleum Reserve.

Meanwhile, the Petroleum Ministry said that India strongly believes that the pricing of liquid hydrocarbons should be ‘reasonable, responsible and be determined by market forces. “India has repeatedly expressed concern at the supply of oil being artificially adjusted below demand levels by oil-producing countries, leading to rising prices and negative attendant consequences,” the ministry added.

India has expressed concern over oil-producing countries trying to bring down processed oil supplies below the demand levels, which is being reflected in rising petroleum and consumer goods prices all over the world. The Centre had already slashed petrol and diesel rates by Rs 5 and Rs 10, respectively, on November 3 this year.

India consumes 50 to 55 lakh barrels of Petroleum products daily which is why it agreed with major countries to release its Petroleum Reserves. The idea to tap the Strategic Petroleum Reserves is taken to put additional pressure on OPEC countries, especially Saudi Arabia, to increase production and reduce the price of petroleum products.

The US, China, India, Japan and South Korea are the world’s largest crude oil-consuming nations.