Blaming High Oil Prices on China

It is completely "devoid of merit" to attribute high oil prices to China and India, Indian Minister of Petroleum and Natural Gas Murli Deora said Thursday in Madrid.

On the final day of the five-day 19th World Petroleum Congress, Deora said while China and India account for one-third of the global population, their combined oil consumption is less than one-eighth of the world's total.

The Indian minister said the high rates of economic growth of the two Asian countries are a significant factor in ensuring the stable and orderly growth of the world economy.

"We are of the firm view that attributing high crude prices to rising demand from India and China is completely devoid of merit and misses the wood for the trees," he said.

Deora said India's population has crossed the one-billion mark, and to maintain the high growth rate of the economy, India does need substantial supplies of oil and natural gas.

Holding the prices of life-line fuels is important from the point of view of ensuring equitable access to the weaker sections of society, Deora said.

"While we agree that a fuel subsidy may have negative impact on the energy market in the long run, the current volatility in the international oil prices and its potential for destabilizing emerging economies, makes states' intervention in pricing of life-line fuels inevitable," he added.

The continuous rise in crude oil prices in the last 10 years is not sustainable over a longer period, he said, adding that it is ripe to find new technology that could be harmonious to economic growth and an environmentally friendly society.

India have taken several steps to enhance energy security, the Indian minister said, listing the steps such as the increasing exploration and production activities within India, acquiring oil and gas abroad, developing alternative resources, strategic storage of oil and oil conservation and the implementation of environment-friendly policies.

The Indian energy minister said 44 percent of the country's sedimentary basins are under exploration.

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