On June 29, India’s Information and Broadcasting Minister said: The cabinet has approved a proposal to allow upstream oil companies to sell crude oil to anyone in the domestic market, a move that would boost the exploration and production sector.

Anurag Singh Thakur told reporters in New Delhi that the move would lead to pricing and marketing freedom in the industry and increase production.

“In the long run, this will dampen imports,” he added. “There will be no revenue loss.” India imports 85% of its crude oil needs. Rising crude oil prices have an inflationary impact on the economy and hurt its macroeconomic indicators.