Cabinet allows Oil PSUs to have independent crude import policy

Union Cabinet has allowed public sector oil companies to have their own independent crude import policy based on their commercial requirements. The Cabinet meeting chaired by Prime Minister Narendra Modi yesterday gave its approval to replace the existing policy by vesting oil PSUs with power to evolve their own policies. This was disclosed by Union Minister Ravishankar Prasad in New Delhi after the Cabinet meeting.

He said



the move will provide a more efficient, flexible and dynamic policy for crude procurement, eventually benefiting consumers. State-owned firms like Indian Oil Corporation have traditionally been allowed to source crude only from national companies of oil producing countries. It was long felt that the list of companies from where the PSUs can buy crude oil on term contracts needs to be expanded to include global oil giants.