Impact of increasing crude OIL prices on Indian industries.

Impact of increasing crude OIL prise on Indian industries. India is an energy importing country, primarily of oil and soon of gas. Its imports are growing while its domestic production lags behind the fast pace of demand growth. The Indian government is conscious of the need to diversify its sources of supply and also to boost domestic supply of primary energy as well as final products (LPG, kerosene, natural gas, lubes, etc.). On the exploration …

…and BPCL into two vertically-integrated major oil companies. No final decision has yet been made on such a restructuring. India is planning to set up a strategic petroleum reserve equal to 15 days of the country's oil consumption. The state-owned refiner Indian Oil Corporation (IOC) is likely to take the lead in the development of the reserve, which would be paid for by the Indian central government by means of a tax on petroleum product sales.