Despite oil prices that topped $ 75 a barrel during 2006, world GDP rose 4%, which in PPP terms works out to 5.3%. This strong global performance reflects the rapid expansion of developing economies, which grew 7.3% – more than twice the rate of 3.1% in high income countries. Fast growing countries such as China at 10.7% and India at 9.4% contributed significantly to this over all performance. Stating this at the 6 th Annual General Body Meeting of Petroleum Federation of India on July 20, 2007 at New Delhi, Mr. S. Behuria, Chairman, PetroFed and Chairman, IndianOil added that according to projections, Indian income levels will almost triple in the next twenty years and that India will become the world's 5 th largest consumer market.

The world's primary consumption in 2006, he said, increased by 2.4%, down from 3.2% in 2005 and just above the ten-year average. Growth slowed for every fuel except nuclear power. India 's demand for petroleum products recorded an year-on-year growth of 5.9% which takes the average growth in consumption of petro-products to 3.4% over the last five years, Mr. Behuria added.

The basket of crude oil that Indian refiners currently buy is just $ 1.50 short of the all time high of $ 75.20 a barrel which it touched last year, Mr. Behuria said. Petrol and diesel prices in the country were last raised marginally in June 2006 when the Indian basket of crude oil was $ 68 a barrel. This was followed by two price cuts in November last year and February this year, which negated the increase. PetroFed's request for issuance of bonds to stand-alone refineries is still awaiting a decision, he added. A decision is also awaited on the Rangarajan Committee's recognition early last year for a minimum interim increase of Rs. 75 per domestic LPG cylinder.

Mr. Behuria lauded the various initiatives taken by PetroFed in bringing to Government's attention a host of critical issues facing industry and focusing industry attention on emerging issues. He briefed the General Body on the various PetroFed actions underway.

Mr. Behuria welcomed the thirteen companies who were admitted as members of the Federation during fiscal 2006-07 and said that nine new members had been added during the current fiscal taking the membership of the Federation to 52.

The Annual General Body passed a resolution adopting the Audited Balance Sheet and Profit and Loss Account of the Federation for the financial year ended March 31, 2007 . M/s. Nath & Mahesh Associates, Chartered Accountants were also reappointed as the auditors of the Federation until the conclusion of the next General Body Meeting.

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