At the time when India is looking for more crude oil on increasing demand for petroleum products in the transport sector, Indian Petroleum Ministry held talks with its Mexican counterpart over the area of cooperation in energy sector.
The Indian road transport sector sees the Indian Petroleum ministry’s move as a positive initiative in the lines of fulfilling the country’s petrol and diesel demand.
India’s crude oil demand has been increasing on the back of high demand for petroleum products like Petrol and diesel, which are mostly consumed by the transport industry in the country.
According to a statement issued today by the Press Information of Burea (PIB), the Indian Minister of State for Petroleum & Natural Gas, Dharmendra Pradhan met his counterpart Minister of Energy of Mexico, Pedro Joaquín Caldwell and held bilateral talks to identify the areas of cooperation in energy sector. Pradhan led a government delegation to Mexico on two-day tour from May 18 to 19.
Pradhan also held meetings with Mexican Minister of Economy, Ildefonso Guajardo Villareal and Emilio Lozoya Austin, Chief Executive Officer of Mexico’s national oil PEMEX.
Currently a few Indian government-owned and private oil companies are buying crude oil from Mexico. The Public Sector Enterprise Indian Oil Corporation and private oil majors like ESSAR and Reliance Industries Ltd are buying 6 MMT of crude oil from Mexico.
In 2014, Mexico has thrown open the energy sector for foreign and private participation. This initiative has increased the opportunities for bilateral cooperation with other countries.
During the meeting, Pradhan said that India is meeting 20 percent of total crude oil demand by importing from Latin America.
India’s another Public Sector Enterprise Oil and Natural Gas Corporation (ONGC) has signed a Memorandum of Understanding (MoU) with PEMEX and is in the process of opening its office in Mexico. The talks between the Indian and Mexican petroleum ministries have raised hopes over the energy cooperation between two countries in the near future.
It may be noted that India’s petrol and diesel demand has been increasing primarily due to expanding size of transport sector in recent years.
According to a Nielson report, of the total diesel and petrol consumed in the country, around 70 percent consumed by the transport industry. The LCV, HCV and buses together account for about 38 percent of total diesel consumption.