Analysis: Low oil prices: It’s time for India to incentivise industry, strengthen energy security

Petroleum Minister Dharmendra Pradhan is luckier than many of his predecessors, thanks to overtly considerate crude oil prices.

Black gold prices are at their lowest best in the recent past due to multiple factors including the unknown enemy Covid-19 that has rocked the global economy. The time is right for Pradhan to turn this into an opportunity to strengthen India’s energy security by incentivising the domestic oil and gas industry.

Need for more reserves

What should Pradhan do? First, there is a need for a concentrated effort to build more strategic petroleum reserves (SPR). Every delay in decision making matters. While the minister has been making frequent reviews, there have been a few hitches. It is time to take action rather than get stuck in bureaucratic glitches.