With the opposition cornering the government over spiralling fuel prices, the issue has become a major concern for the Narendra Modi government at the Centre as it comes ahead of the Assembly elections in Madhya Pradesh, Rajasthan, Chhattisgarh and Mizoram and also the Lok Sabha elections due next year.
The Prime Minister in 2015 had set a target of reducing India's oil dependence by 10 per cent to 67 per cent (based on import dependence of 77 per cent in 2014-15) by 2022. He said that a partnership between oil producers and consumers would help stabilise the global economy. Oil-producing nations should channel their investible surplus to pursue commercial exploitation in the sector in developing countries, he added.
"He requested for review of payment terms so as to provide temporary relief to the local currency", the statement quoted him as saying.
U.S. oil supplies are over-burdened according to reporting, but American crude will do little to help Eastern energy needs.
Mr. Al-Falih said Saudi Aramco's investment of $44 billion in the Ratnagiri refinery was "just the start" and that the company was keen to invest in an integrated downstream business, including on the retail side, as well as in storage capacity.
"To this, I said that my fields (in Rajasthan) are much worse then the oil-rich ones in Saudi Arabia but my cost is just $6 per barrel", he said.
"Prime minister cautioned producers like myself not to kill the hen that lays the golden egg", he said referring to consumers are the golden hen. "Many factors lie outside the control of oil producers like us. we only control supply", he told reporters, according to NDTV.
Modi noted that the oil market was producer-driven both in terms of quantity and price.
Modi sought greater participation of private companies in the distribution of the gas sector.
"Though there is enough production, the unique features of marketing in the oil sector have pushed up the oil prices".
Modi's first meeting was on 5 January, 2016 where suggestions for reforming natural gas prices were made.
The price of USA crude oil has eased back to the $71 per barrel mark after only a brief rally following the losses that took it from a high near $77 on October 3.
The RBI said in its policy statement: "Global headwinds in the form of escalating trade tensions, volatile and rising oil prices, and tightening of global financial conditions pose substantial risks to the growth and inflation outlook".