PM Narendra Modi asks oil producers to review terms of payment

PM Modi's Silence On Allegations Against MJ Akbar Unacceptable Congress

Fuel prices continue to rise, Modi to meet oil company heads

India, the world's third-biggest oil importer, is facing record high retail prices as worldwide crude rate soared and rupee value dipped.

Sharma maintained that there was a hike in the price of the fighter aircraft India was buying from France and asserted that the prime minister needed to clear many doubts about the deal that had been raised.

Among others who are likely to attend the meeting are - ONGC Chairman and Managing Director Shashi Shanker, Indian Oil Corporation (IOC) Chairman Sanjiv Singh, GAIL India head B C Tripathi, Hindustan Petroleum Corp Ltd (HPCL) Chairman Mukesh Kumar Suran, Oil India Chairman Utpal Bora and Bharat Petroleum Corp Ltd (BPCL) Chairman D Rajkumar.

Similarly, petrol prices in Mumbai, Kolkata and Chennai also rose on Sunday - to Rs 88.18 in Mumbai, Rs 84.54 in Kolkata and Rs 85.99 per litre in Chennai.

The Indian rupee has fallen 14.5 per cent this year, making imports costlier.

He, however, said the "pain" would have been "much louder" but action by Saudi Arabia, the world's largest exporter of oil, to invest in creating spare capacity has used to cushion price shocks.

"Prime minister cautioned producers like myself not to kill the hen that lays golden egg, he said referring to consumers are golden hens", Al-Falih said.

The official statement said Prime Minister Modi at the meeting made a strong case for a partnership between the producers and consumers to stabilise the global economy which is on path of recovery.

The rupee, which is now Asia's worst-performing tender, has lost around 14 percent of its value against the American currency this year.

PM Modi pointed oil consuming countries like India face economic challenges and resource crunch due to rising crude oil prices.

Modi also asked global industry executives why they haven't committed much investment to the Indian upstream sector despite government reforming policy as per their suggestions in previous annual meetings, according to sources. Talking of ongoing commercial exploitation, he made a special mention of the extension of production sharing contracts, the statement added.

The Congress has kept up the pressure on the government over the oil price rise. He said the support of oil producing companies would be very critical to bridge the gap. Sources said at one point during discussion on production cost of oil, the Saudi minister said producers "lose money" at $40-50 per barrel price.

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