Buy ships to transport energy: Govt to oil cos

Freight charges are key to calculations of retail prices of petrol and diesel

- Rituraj Baruah

India’s public sector oil and gas companies are looking at purchasing ships to transport oil and gas following a Union government directive aimed to ensure energy security, two people aware of the development said.

The move comes at a time of rising crude prices, a price cap on Russian oil, and a bar on the use of Russian ships for transporting oil and gas.

“The government has been asking oil companies to buy ships....But where are the ships available," said one of the two people, adding that despite poor availability, large oil companies are likely to locate and procure them.

Freight charges are key in terms of retail price calculation of petrol and diesel, which have remained elevated and unchanged for over a year now.