India's biggest oil refiner Indian Oil Corp has warned OPEC to reduce crude prices or face waning demand, reported Bloomberg.

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Sanjiv Singh, chairman of IOC, said that South Asian consumers will likely move to electric vehicles and gas if the oil prices continue to rise at the current pace, reported Bloomberg on Thursday.

The shift to these alternatives, according to Singh, will replace 1 million barrels of the country’s daily oil use by 2025, said the report.

“Demand cannot be seen in isolation to prices, especially for a price sensitive market like India,” Singh was quoted in the report. “You may not see an impact on demand in the short term, but in the long term, definitely it will have implications."

“If instead of $83, prices reach $100 by 2025, then other forms of energy will become more competitive,” Singh added.

Worries with regards to a global supply crunch caused almost a 5 percent jump in oil since April, added the report.

First Published:Jul 12, 2018 11:39 AM IST