India needs to build up its shipping fleet to help refiners benefit from discounted crude oil, the chairman of Indian Oil Corp, A S Sahney, told an industry event on Tuesday.
"We have been neglecting shipping...we have to build our capabilities in shipping. Today we are getting crude at discount but freight is eating that up. Freight is a killing factor," Sahney said on a panel at the Energy Technology and Innovation Meet in Goa, referring to a lack of tankers to carry crude.
Freight rates for Russian oil exports from its western ports to India hit record highs in early October, driven by heightened risks in the Black Sea and a global rally in tanker fees.
Sahney said India also needs to invest in building crude and liquefied petroleum gas storage that will give the country a few more days of cushion.
(Reporting by Nidhi Verma; Editing by Susan Fenton)