High fuel prices not good for both oil producer, consumer countries: Indian Oil chief

Stating that higher fuel prices are not good for both Oil producing and Oil consuming countries, Indian Oil Corporation Ltd (IOCL) Chairman SM Vaidya on Wednesday said that the Organisation of Petroleum Exporting Countries (OPEC) should increase the production of crude oil to cool off the prices.

In an exclusive interview with ANI, Vaidya said, "No doubt prices of diesel petrol has increased. Post-Covid our economy has seen V shape recovery. Today consumption of petrol and diesel has crossed the pre-Covid-19 level. Petrol consumption has seen an increase of 8 to 9 per cent from the pre-Covid-19 level, diesel consumption has seen a 1.5 per cent increase and LPG consumption has also recorded an increase."

He further said, "This economic development is a good sign. The development in the global economy is pushing crude prices upwards. During the Covid-19 period, OPEC has cut the production of crude oil. Petroleum Minister Hardeep S Puri and I had a long discussion with OPEC Secretary-General, Mohammad Sanusi Barkindo, to increase the production of crude oil to bring down the prices and increase the supply of crude oil in markets."

"An increase in crude oil prices is not good for global development. The price increase is neither good for oil producer countries nor for oil consumer countries. There should be responsible pricing which is better for both oil producer countries as well as oil consumer countries," he added.

Earlier in a briefing, Vaidya announced the setting up of 10,000 electric vehicle charging stations (EVCs) in the next three years.

"2000 EVCs will be established in the next 12 months and another 8000 will be established in the next two years...these EVCs will be opened at the petrol pumps owned by IOCL and its dealers," said Vaidya.

IOC Chairman said that the decision of opening 10,000 EVCs is in line with the vision of Prime Minister Narendra Modi where he announced a five-pronged target for India and a commitment of 'Net Zero' emission target by 2070.

Vaidya said, "Indian oil will invest around Rs 150-200 cr to achieve this target and will also claim the subsidy which is being provided by govt. Currently, IOC has 448 EVCs. As per an estimate, a slow charger takes 1.5 to 2 hours to fully charge a three-wheeler and 3 hours for 4 wheelers.

"A fast charger takes 45 minutes to one hour to fully charge a car. Heavy Duty Charger takes 2-3 hours to charge a bus. Out of 2000 EVCs, IOC will open 231 charging stations in nine high priority cities which includes Mumbai, Delhi, Bangalore, Hyderabad, Ahmedabad, Chennai, Kolkata, Surat and Pune. 253 EVCs will be opened in Other Smart Cities and 1472 EVCs will be opened in Other Cities and Highways," added the IOC Chairman.

( With inputs from ANI )