Why Saudi Arabia sells expensive oil to India?

Saudi Arabia has announced to invest 100 billion dollars in India. In recent, Saudi has invested 20 billion dollars but now in India, Saudi Arabia is going to invest 5 times. But this figure doesn’t show the love of Saudi’s to any country more or less. Due to economic necessity, Saudi now doesn’t want to just depend on petroleum. In the decade of the 80s to 90s, Saudi was amazingly strong to invest and waste thier money but in today’s’ date Saudi is not in that condition.

Investing 20 billion dollars in Pakistan is not a love of Saudi but it is a way to earn money from there. Saudi wants to establish a market in an oil market in Pakistan. Investment of 8 billion dollars is for Gwadar port Oil refinery system. Gwadar port is very important for China- Pakistan economic corridor where the United Arab Emirates has also invested their money. China has invested 62 billion dollars in one belt one road i.e, China-Pakistan economic corridor.

Investment of Saudi has done in India and Pakistan so that oil of Saudi keeps selling in Asian Countries.

Comparing to Europe, Saudi collects Asian Premium. This premium makes a barrel of oil to 2-3 dollars pricier. This way they earn thousands of crore from India for pricey oil.
Saudi sells approx 3 dollars cheaper to America and Europe Countries.

In 2017-2018, Saudi Arabia has made a profit of approximately 1 lakh crores with raw oils. In which if we calculate Asian Premium aside, Saudi has collected 5 thousand crores from India. Rumors were there that PM Modi will talk to Crown Prince Salman for Asian premium tax but this is is not yet came out whether PM Modi has talked for this or not.

Saudi has invested in Petroleum but they have tried to invest other than petroleum also. Both Saudi and India are seeking to join in new products and fields. Suresh Prabhu has said that now the time has come to do business other than petroleum with Saudi Arabia.

The largest oil importer company of India IOC has also signed a deal with America for a year. That also makes Saudi to seek business in other things, so that they stay in demands.

Written by Ashutosh Kumar

He studied software engineering but wanted to be a writer since born. So, he followed his passion and ended up being a reporter for PoopBite. He has a very deep-seated interest in all current affairs topics whatsoever. He is also a passionate photographer.

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