A major fall in the international crude oil prices has helped India save thousands of crores of rupees by filling its strategic reserves at low cost. The country has saved Rs 5,000 crore in foreign exchange while strengthening its energy security by filling the strategic reserves to full capacity with cheap crude oil, the Ministry of Petroleum and Natural gas said in a tweet. Out of the proposed strategic reserve of 6.5 MMT, India has commissioned 6.33 MMT of strategic oil reserves so far in Vishakhapatnam, Chandikhole, Padur, and Mangalore. Crude oil holds the largest share in India’s overall imports, thus, cheaper oil dramatically cuts down the country’s import bill and current account deficit.
The PSU oil firms were asked to import oil in the month of April when the crude prices were at a decades-low level. the crude oil prices fell to around $20 per barrel in the month of March. Also, WTI futures crashed to below $5 per barrel level in April 2020.
