New Delhi: Prime Minister Narendra Modi Monday warned oil producers like Saudi Arabia that higher crude prices are hurting global economic growth and they should do more to bring down rates to reasonable levels.
At the third annual brainstorming meeting with chief executives of top global and Indian oil and gas companies, Modi flagged concerns of consuming nations like India over high crude oil prices that have already sent retail petrol, diesel and LPG rates to record highs, sources with direct knowledge of the development said.
With Saudi Oil Minister Khalid A Al-Falih listening, the prime minister said crude oil prices at a four-year high was hurting global growth, causing inflation and upsetting budgets of developing countries like India.
Later on Monday, the oil-rich nation committed to meeting India's rising oil demand and said it is keen to invest in fuel retailing and petrochemical business in the world's fastest-growing energy consumer.
Speaking at India Energy Forum, its oil minister Khalid al-Falih hailed Prime Minister Narendra Modi and his government for making it easier to do business in the country.
"My frequent visits to India are indicative of the importance Saudi Arabia attaches to this great nation as a critical energy and a strategic global player," he said calling the county an "emerging superpower".
Modi also asked chief executives why no new investments in oil and gas exploration and production are coming to India despite the government implementing all the suggestions they made at the previous such meeting, sources said.
Speaking at the same conference, Oil Minister Dharmendra Pradhan said India is "facing severe headwinds from rising oil prices" which have risen by 50 per cent in dollar terms and 70 per cent in rupee term in last one year.
The meeting, which was also attended by Finance Minister Arun Jaitley and NITI Aayog vice-chairman Rajiv Kumar, was called to discuss emerging energy scenario particularly ripples from US sanctions on Iran and volatile oil prices threatening growth.
The third annual meeting also deliberated on ways to revive investment in oil and gas exploration and production, sources said.
Modi's first meeting was on January 5, 2016, where suggestions for reforming natural gas prices were made. More than a year later, the government allowed higher natural gas price for yet-to-be-produced fields in difficult areas like the deep sea.
In the last edition in October 2017, suggestions were made for giving out equity to foreign and private companies in producing oil and gas fields of state-owned ONGC and OIL. But the plan could not go through given strong opposition from Oil and Natural Gas Corp (ONGC).
Sources said BP CEO Bob Dudley, Total head Patrick Fouyane, Reliance Industries Director PMS Prasad and Vedanta chief Anil Agarwal attended the meeting.
The two-hour meeting, coordinated by NITI Aayog, is believed to have focused on challenges most by volatile oil prices and the US sanctions on Iran. The meeting looked at measures to attract investments and steps for making it easier to do business in India.