Petroleum Minister Hardeep Puri has said volatility in oil prices may affect the energy transition.
Petroleum Minister Hardeep Singh Puri said on Monday he was concerned about high oil prices and that volatility in prices could hurt the world’s energy transition.
Mr Puri told Reuters on the sidelines of an oil and gas conference in Abu Dhabi that while “petrol prices – and diesel prices – are literally going through the roof, obviously, we are concerned”.
India has been at the forefront of efforts to urge the Organization of the Petroleum Exporting Countries (OPEC) to ensure “responsible pricing” of oil that is fair to both producers and consumers.
“Should it be cheap? Yeah. If energy isn’t cheap, you’re going to have a problem,” he said.
He said it is up to OPEC and the Russia-led allies, known as OPEC+, whether to accelerate the pace of increasing production, but “you can’t have a situation in which the transition is orderly, stable.” And don’t be predictable.”
Mr Puri said that despite low investment in the sector, there was an additional capacity of about 5 million barrels per day available that could be pumped into the market and stabilize prices, but were being held back by producing countries. Was.
“Those decisions, they are taking for whatever reason, maybe they think it is a good time to lower prices that were during the economic lockdown,” he said.
“I have a very different perspective on this. Sometimes when you make decisions for short-term gains, you can free up other forces.”
He said he expects oil demand to decline if prices “go beyond a point”.
“Already, a big country, a $20 trillion economy, has the highest inflation figures in the last 30 years. So the reality is in your face.”
Mr Puri said producers also need the energy transition to settle down and will suffer if prices get too high.
,