Asian countries are charged around US$1-US$2.50 per barrel in comparison to OPEC customers in the US and the EU; hence the term “Asian Premium”. OPEC’s justification for the premium has always been giant consumers like the US will shop elsewhere if crude is not sold to them at ‘competitive prices’.
According to The Indian Express paper, citing an anonymous Petroleum Ministry senior official, “The issue of doing away with the ‘Asian premium’ is on top of the agenda for India at the OPEC meet. OPEC is headed by a person who is from Asia and hence we are hopeful of some positive development on this front.”
“India will team up with China and Japan to press for the removal of the premium. A joint paper has been prepared and presented at the International Economic Forum and this would form the basis of the arguments at the OPEC meet.
“There are indications that the issue might be resolved this time in the OPEC meet”, added the insider, understood to be part of the negotiating team, without elaborating further.
