Oil minister Pradhan flexes India’s market muscle for better OPEC terms
NEW DELHI: India on Tuesday leveraged its position as the world’s third-largest oil consumer to seek better commercial terms from OPEC, the cartel of 14 oil exporting countries that accounts for 80% of the country’s oil imports.
At a meeting with OPEC secretary-general Mohammad Sanusi Barkindo here, oil minister Dharmendra Pradhan sought lower OSP (official selling price), credit period of 90 days against 30 days at present, freight discount and open credit based on credit worthiness of Indian state-run refiners who are the main importers.
Indian state-run refiners buy bulk of the crude under term contracts that follow the OSP set by the national oil company of the exporting country. The OSP is often higher for Asian customers ususally because of, among other reasons, a premium in the price markers generated from spot market of Dubai and Oman.
