- The government will start keeping a strategic oil reserve from this month, which would be located at Visakhapatnam in Andhra Pradesh.
- India had no strategic oil reserve till now and the initiative would help it tide over any crisis on the oil front.
- The plan is to build a capacity of 5 million tonnes strategic reserve of oil in the first phase. This amount of oil will run the country for 13 days in case of any eventuality. Further the capacity of the reserve will increase in the second phase.
- India has demanded that the system of ‘Asian premium’ which India has to pay while purchasing oil should be terminated. European countries do not have to pay it and they get oil at a lesser rate.
- The relation of India and OPEC should not just be limited to a buyer-seller relationship rather OPEC should consider India as their one of the largest customers.
Bihar LPG connectivity
- The Centre is trying to improve LPG connectivity in Bihar as it ranked much lower than the national average.
- Only 30 per cent households in Bihar have LPG connections while the national average is around 60 per cent. The price of connection has been reduced to Rs 1,600 to Rs 2,400.
- There is also a plan to expand the capacity of the Barauni refinery in Bihar and create a petrochemical hub there