India likely to push for dropping ‘Asian premium’ on oil prices

India likely to push for dropping ‘Asian premium’ on oil prices

Context

India is likely to lobby heavily for an end to the discriminatory “Asian premium” on oil prices and a “responsible” price mechanism, as it prepares to host a major conference for oil producing and consuming countries

Backdrop

International Energy Forum (IEF) April 10-12

• India has made repeated demands to the IEF countries to remove what is called the “Asian premium” on prices that was pioneered by Saudi Arabia, which distinguished consumers in Asia from the U.S. and European countries thereby charging more per barrel of crude oil from them. However, the demands have met with little success and the issue is expected to be raised on the sidelines of the event, if not during the conference with Saudi Arabia and others

IEF

The IEF represents 90% of world consumption and production of oil and gas. All 92 member countries of the IEF are expected to send delegations, with about 40 participating at a ministerial level