Govt worried about fuel supplies from volatile Middle East:FM

New Delhi, Mar 24 (PTI) Finance Minister of India
Pranab Mukherjee Thursday said the country was concerned by
the ongoing turmoil in Middle East and North Africa as it
imported two-third of its oil imports from the region.
"If you look at our oil requirement...out of 100
million tonnes imported last year, 67 million tonne or
two-thirds came from Middle East alone," he said in the Upper
House of Indian Parliament, Rajya Sabha, while replying to a
debate on finance bill.
"If the situation remains unstable there, it is quite
natural for anyone to express concern and to hope and to try,
if possible, to restore normalcy, peace and stability in the
region because our vital interests are linked to that."
He also pointed out that there were six million
Non-Resident Indians (NRIs) in the Middle East.
Mukherjee's statement comes at a time when the
political turmoil in places like Libya and Bahrain has taken
global crude prices to over USD 100 dollar per barrel.
Crude prices had touched a 30-months high of USD 120
per barrel last month following unrest in Egypt and Tunisia.
In his reply, the Finance Minister also said that
increase in global commodity prices was a reality to be lived
with.
"...why did I refer to the crisis in Middle East or
japan... Not to find a cover to have some excuse that the
prices will go up. It is not that. Today my primary concern is
about the availability... it is not an excuse," he said.
Experts are apprehensive about disruption of supplies
from Libya, a major oil exporter and OPEC member, on account
of fighting between government forces and rebels.
India imports almost two-thirds of it oil requirement
and state-run firms have been suffering losses on account of
huge subsidy bill.
While the government deregulated the petrol prices
last year, diesel continues to be on the regulated list. If
the current spurt in oil prices continues, the government may
be either forced to pass on the burden to consumers or risk
inflating its deficit.
According to experts, the government is expected to
take a decision on diesel price deregulation after assembly
elections in four states and one Union Territory, scheduled
for April-May, are over.