PM Narendra Modi’s appeal to lower oil prices gets negative response from Saudi Minister

Prime Minister Narendra Modi’s appeal to top oil-producing nations to put lower the oil prices received a passive response from the Saudi Arabia oil minister, who said that many factors that affect the rise in oil price are out of their hands.

Speaking at the third annual brainstorming session with the chief executives of top global and Indian oil and gas companies, PM Modi warned oil producers like Saudi Arabia that the high crude oil prices are hurting the global economic growth. He urged the top oil-producing nations to bridge the “resource crunch” between them and other countries like India.

He also sought reasonable prices that will bring a temporary relief to India’s sinking currency and also help the consumers and merchants in the country.

“The oil market is producer driven and both the quantity and prices are determined by the oil-producing countries… Though there is enough production, the unique features of marketing in the oil sector have pushed up the oil prices,” PM Modi was quoted as saying by a statement, reports NDTV.

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But Saudi oil minister Khalid A Al-Falih, who was present at the meet said that the oil prices were not within their control.

“Many factors lie outside the control of oil producers like us… we only control supply,” he said, reports the news website. He, however, assured that Saudi Arabia will bring in new oil investments to India.

The continuous rise in crude oil prices saw the rupee fall almost 14.57 per cent low and with India being the third largest oil consumer (83 per cent of oil is imported) it hat further hit the country’s economy.

Last week, however, the central government sanctioned Rs 2.50 cut on the fuel pries bringing a relief to the consumers.

The meeting mainly centered on the finding a reasonable oil price for both the consumers and producers and also boosting the investment and production in oil and gas.

Modi also questioned the chief executives on why no new oil investments or productions were coming to India despite the government implementing all of their previous suggestions.