The Oil Minister has said that oil producers should stop charging premium from its Asian buyers and offer better trade terms like selling oil without payment guarantee and on extended credit period, media reported.
Commenting on the issue, Oil, Petroleum Minister Dharmendra Pradhan told the media, "India wants to leverage its position as a big buyer to corner favourable deals in an oversupplied market. We need good deals, that's our constant demand. That India as a big buyer of crude oil should get reasonable price in future is our expectation."
"There is a strong feeling that Asian counties like India should receive Asian discount rather than paying Asian premium while making bulk purchase of crude. I will not hesitate to say Asian premium was historically never justified and more so not justifiable in the changed market scenario where Asian countries are the major buyers," he added.
As per reports, India wants OPEC to reconsider its policy of seeking letter of credit as payment guarantee from regular and bulk buyers and has demanded that it considers extending the credit time for crude import.