New Delhi, Jun 20 (KNN) The jihadis fighting with the Iraqi government have sent the world crude oil market on the boil with the price rising to USD 115 per barrel following which the Indian oil marketing companies may announce hike in petrol any time soon along with diesel which still remains an administered item. Price hike will have to be borne by the consumers and the industry.

However, the government has put up a brave face assuring citizens and the industry  that there would be no disruption  of crude supplies from Iraqi oilfields at Basra, since they are located far-off the war zone.   

After a high level review meeting yesterday, a government statement said, “It was noted that while India imported about 13 per cent of its crude oil requirements from Iraq last year, in the current year, the Public Sector Oil Marketing Companies (OMCs) had planned to import 19.4 Million Metric Tonnes, MMT (about 20 per cent of their requirement) of crude oil from Iraq, mostly by IOCL and HPCL.

“It was also confirmed that against the 18.7 MMT of crude oil imports planned by these two OMCs from Iraq in 2014, 50 per cent of the contracted quantity has already been lifted. Crude supplies to India from Iraq come from the Basra oilfields which are situated well away from the conflict zone in the north-eastern part of Iraq and loading of ships, including by the two PSUs, from the Basra oil terminal, continues normally”.

But still, the government has asked the OMCs to prepare a contingency plan both for the short and medium term including diversification of their resources for import of crude oil in order to minimize the impact of any geo-political instability in the middle-east. (KNN Bureau)