Iraqi Deputy Prime Minister for Energy Hussain Ibrahim Saleh al-Shahristani said the country could not sell crude oil at a special price to India as its laws do not allow such a move.
Iraq is the second-largest supplier of oil to India, which
imports about 20 million tonne of crude oil from the gulf nation annually.
Al-Shahristani said the country could supply crude oil only at the existing market-determined prices to India.
Shahristani said this when asked whether his country could offer discounts to India — considering the old ties between the two countries.
It may be recalled that Iraq seeks to increase crude supplies to the country and woos investments in the oil and petrochem sectors.
Noting that India’s oil demand will rise 4-5 per cent annually, Shahristani offered uninterrupted oil supplies and also sought increased investments into his country, which needs $500 billion to improve infrastructure after the war-time destruction.
India can count on Iraq as a dependable, long-term supplier of its crude oil needs, he said.
Over the next two decades, India may increase its dependence on import for crude oil to 92 per cent from 74 per cent in 2012, reports indicate.