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Rajya Sabha
Both Public Sector Undertakings (PSUs) and private refineries in India buy crude under agreements called “Term Contracts” from national oil companies/other companies of Saudi Arabia, Kuwait, UAE, Iraq, Iran, Malaysia, Brunei, Oman and Qatar. Such agreements are normally for a period of one year for the supply of agreed quantities of crude, specifying the delivery schedule. The price for such ‘Term Contacts” is fixed by the national oil companies of the supplying countries on a monthly basis. Such prices are based on the average of the day-to-day prevailing prices in international markets.
For the year 2004-05, oil PSUs have signed Term Contracts for the supply of 42.51 million metric tonnes (MMT) of crude. Oil PSUs have also signed Term Contracts for the supply of 2.143 MMT of LPG from the national oil companies of Saudi Arabia, UAE and Malaysia.
Besides terms contracts, crude is also purchased on a spot basis by both PSUs and Private Refineries. For the period April-September 2004, PSUs purchased 10.991 MMT of crude and 0.2760 MMT of products from the spot market.
This was stated by Shri Mani Shankar Aiyar, Minister of Petroleum & Natural Gas, in reply to a question in the Rajya Sabha today.
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