Tehran: India has urged the Organisation of Petroleum Exporting Countries (OPEC) including the United Arab Emirates (UAE) and Iran to restructure the international pricing mechanism for crude oil.

"We are required to pay an additional $ 2 per barrel which we describe as the Asian premium. This raises our energy costs and is a burden on developing economies," Petroleum Minister Ram Naik said on the sidelines of crucial talks with Iran on co-operation in oil and gas sector.

"The oil exporting countries have accepted that there is a problem but not solved the problem. They have maintained that it may be sorted out bilaterally at the time of negotiations," he said.

"India imports 84 million tonnes of crude which was worth Rs 85,000 crore last year. Two thirds or 65 percent of our imports are sourced from the Middle East," he pointed out.

In the current volatile scenario, the oil prices had been highly erratic. During the recent war against Iraq, the crude prices went up from $ 16 per barrel to as high as $ 36 per barrel, which spelled doom for developing countries, he said.

India has been a reliable customer for crude and has never defaulted on payment, which also may be considered by the oil exporters in the region, he said.

PTI