New Delhi, Nov 6: Raising concern on rising crude prices, Petroleum Minister Murli Deora today said the matter is of grave concern as it will result into economic dislocation to developing countries.
''Rising oil prices will pose a grave concern to all developing countries due to the imminent danger of economic dislocation and its cascading effect on both oil producing and consuming countries,'' Mr Deora said while addressing the 1st India Africa Hydrocarbon Conference here.
As legitimate energy demands of developing countries grow in order to fuel their economic growth, the spare capacity across the global supply chain has been diminishing feeding speculative interests in the oil market, he added.
Against this backdrop, ''the spectacular oil reserves of Africa are gratifying,'' he said, seeking greater cooperation between India and energy-rich African nations.
India has stepped up efforts to woo fuel-rich African states as oil prices surged towards the 100 dollar mark.
Mr Deora urged African countries including Sudan, Egypt and Nigeria to ''use the opportunity to develop strong business ties for mutual benefit.'' The increasing trade and commercial ties between both the countries is evident from the ten-fold growth in bilateral trade between 1990 and 2005 from 967 million dollars to 9.1 billion dollars.
In the last ten years, African oil reserves have risen by an impressive 56 per cent. Also, production has jumped by over 30 per cent during this period.
India, which currently imports more than 70 per cent of its energy needs, is seeking new supplies of oil and gas from abroad as well as ramping up production from domestic sources to fuel runaway economic growth.
Oil ministers from eight countries and delegations from some 18 others are taking part in the conference.
State-run fuel retailers Indian Oil, Bharat Petroleum and Hindustan Petroleum are currently losing Rs 240 crore per day on selling petrol, diesel, domestic LPG and PDS kerosene as the government has not allowed them to raise retail prices in line with the surge in cost.