Prime Minister Narendra Modi on Monday made a strong pitch for responsible pricing of crude oil that balances the interest of both producers and consumers amid concerns that volatility in oil prices could impact economies.

“We also need to move towards transparent and flexible markets for both oil and gas. Only then can we serve the energy needs of humanity in an optimal manner,” Modi said at the Petrotech 2019 conference here.

For a nation dependent on imports to meet more than 80 per cent of its oil needs and half of its gas requirements, the volatility last October pushed up retail petrol and diesel prices to record highs.

The same has led to natural gas not being used as a fuel in power plants despite it having enormous environmental advantage over polluting coal and liquid fuels.

Modi said the challenge before nations is to deliver affordable, efficient, clean and assured energy supplies to their citizens. “Suitably priced, stable and sustainable energy supply, is essential for rapid growth of the economy,” he said.

The Prime Minister said India is the fastest-growing large economy in the world and a recent report has estimated that it could be the second largest world economy by 2030.

At present, India is the sixth-largest economy in the world and is the third-largest energy consumer in the world, with demand growing at more than five per cent annually.

“India remains an attractive market for energy companies with energy demand expected to more than double by 2040,” he said.

Stating that the energy sector is a pivot and key enabler of growth, Modi said energy supply, sources and consumption patterns are changing. “Perhaps, this could be a historic transition.”