Mangaluru: Centre taps into strategic oil reserves to ease impact of global crude price rise?

Team Udayavani, Oct 22, 2021, 6:40 PM IST

Mangaluru: The central government has started to tap into its strategic reserves to ease the impact of the global crude oil price rise. The petroleum stored in these facilities is being sold to government-owned oil refineries.

H.P.S. Ahuja, who is the chief executive officer of the Indian Strategic Petroleum Reserves Ltd (ISPRL), said that the company has already disposed of the entire stock of three lakh tonnes of crude oil in one of its facilities. The remaining stock of 4.5 lakh tonnes will also be sold soon, he added.

Elaborating on the details of the recent transactions, Ahuja said, 0ne of the two oil storage facilities here will be leased to Mangalore Refinery and Petrochemicals Ltd. (MRPL). MRPL will use this facility to store crude it imports from Saudi Arabia.

Another 1.5 lakh tonnes of crude stored at the Vishakhapatnam facility has been bought by another public sector company, the Hindustan Petroleum Corporation Ltd.

For ensuring the energy security of the nation, the Government of India had decided to set up massive underground storage facilities of 5 million metric tons (MMT) capacity at three locations namely, Visakhapatnam, Mangaluru, and Padur (near Udupi). These strategic storages, which added to the existing storages of crude oil and petroleum products, were aimed as a cushion during any supply disruptions.

The government had procured crude in the two oil storage facilities of ISPRL here when the price per barrel touched a  low of $19. With the crude touching $80 in the international markets recently, the government has made handsome profits on its investments in the strategic reserves.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

397 COVID-19 cases, four deaths in Karnataka

18 die when bus heading to wedding swept into river in Kenya

Cluster declaration if 3 cases are found: CM Bommai

Delhi airport sets up 20 counters for int’l flyers who have pre-booked Covid test to ease ‘chaos’

BCCI increases age limit for match officials, support staff to 65 years

India 332 runs ahead against New Zealand

Veteran journalist Vinod Dua no more


Traditional ‘Kambala’ Buffalo race at koorgi Hosamata

Udayavani News Bulletin 04-12-2021


Leopard found in Bantwala

Former CM Siddaramiah Escort vehicle Accident at Chikkamagaluru

Latest Additions

397 COVID-19 cases, four deaths in Karnataka

18 die when bus heading to wedding swept into river in Kenya

Cong govt in Rajasthan has completely lost its credibility: BJP state chief

Chadha cruises to comfortable six-shot win

Cluster declaration if 3 cases are found: CM Bommai

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.