Petroleum and Natural Gas Minister Hardeep Singh Puri on Friday said a sharp fall in crude oil prices would reduce incentives for investment in the energy sector, even as lower prices would benefit downstream companies.

“If crude oil prices go very much down, there will be no incentive to invest,” Puri said, adding that while lower prices would make consumers and downstream firms such as Indian Oil Corporation happy, upstream companies like Oil India and ONGC would be impacted.

Puri said global energy markets are undergoing changes but remain stable, noting that crude prices have neither fallen below $60 a barrel nor risen sharply. He added that allowing additional oil supply would help keep prices stable.

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“The world has become more challenging, but there is no shortage of oil globally,” he said.

Referring to India’s energy landscape, Puri said the country has faced multiple challenges over the past five years but has been able to navigate them. He said India has performed reasonably well on availability, affordability and sustainability.

Puri also said India now occupies a central position in the global energy landscape, even as international markets continue to evolve.

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