Low production due to COVID-19 raising fuel prices: Pradhan

Union Minister for Petroleum andNatural Gas Dharmendra Pradhan on Monday said fuel prices hadgone up because of lower production in oil-producing nationsdue to the coronavirus pandemic.This lower production had caused an imbalance indemand and supply, the minister said.Oil producing countries stopped production or reducedit during the coronavirus epidemic.

Union Minister for Petroleum andNatural Gas Dharmendra Pradhan on Monday said fuel prices hadgone up because of lower production in oil-producing nationsdue to the coronavirus pandemic.

This lower production had caused an imbalance indemand and supply, the minister said.

''Oil producing countries stopped production or reducedit during the coronavirus epidemic. A pressure on fuel priceswas seen due to this imbalance in demand and supply. A fewmonths ago, crude oil prices were USD 35-38, which has gone upto USD 54-55,'' he told reporters here.

''Our basic challenge is we have to import 80 per centof crude oil of our requirement. Consumption has beenincreasing. India is third as far as energy consumption isconcerned,'' he said.

He said the focus of the government was on electricvehicles (EVs), solar energy, production of ethanol etc tobecome self-reliant in the energy sector.

Ethanol production, which was less than 1 per cent ofdemand when the NDA government came to power in 2014, was setto reach 9 per cent this year, he said.

In reply to a query on some people doubting theefficacy of COVID-19 vaccines, Pradhan said countries acrossthe world were looking at India with hope in the fight againstthe pandemic.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)