Daijiworld Media Network - New Delhi
New Delhi, Mar 12: India’s crude oil supply remains secure despite the ongoing conflict in West Asia, Union Petroleum Minister Hardeep Singh Puri said in Parliament on Thursday, asserting that there is no need for “rumour mongering” about the country’s energy security.
Addressing concerns over disruptions in global oil markets, Puri said India has secured crude supplies that exceed the volumes that would normally pass through the Strait of Hormuz, a key shipping corridor affected by the ongoing conflict.
“The world has not faced a moment like this in modern energy history. India’s crude supply position is secure, and the volume secured exceeds what the Hormuz would have delivered,” the minister said.
The statement came as the International Energy Agency warned that the conflict in the Middle East could trigger the biggest oil supply disruption in history. Oil prices surged past $100 per barrel after Iran launched fresh attacks on energy infrastructure in the Gulf region.
The conflict began on February 28 following strikes by the United States and Israel on Iran, escalating tensions and affecting global oil production.
According to the Paris-based energy agency, the 13-day conflict has already cut the Gulf states’ oil output by at least 10 million barrels per day, creating what it described as the largest supply disruption in the history of the global oil market, potentially surpassing the oil shocks of the 1970s.
The situation has also seen Iran tightening control over the Strait of Hormuz, through which nearly one-fifth of the world’s crude oil shipments normally pass.
Puri said that before the crisis nearly 45 percent of India’s crude imports passed through the Hormuz route. However, due to diplomatic outreach by Prime Minister Narendra Modi and diversification of supply sources, India has secured sufficient crude through alternative routes.
He also assured Parliament that domestic LPG supply remains stable. “In the last five days, LPG production has been increased by 28 percent through refinery directives, and further procurement is underway. The government’s priority is that the kitchens of India’s 33 crore families, especially the poor and underprivileged, do not face any shortage,” he said.
The minister added that even if the conflict continues for a prolonged period, electricity generation for households and industries will remain unaffected.
India has diversified its energy procurement, with liquefied natural gas cargoes arriving regularly from countries including the United States, Norway, Canada, Algeria and Russia.
Puri also said Indian refineries are operating at high capacity utilisation, with some running at more than 100 percent capacity.
“There is no shortage of petrol, diesel, kerosene, aviation turbine fuel or fuel oil. The availability of all petroleum products is fully assured,” he said.
He noted that India has increased non-Hormuz sourcing of crude to about 70 percent of its imports, up from 55 percent before the conflict began. The country now sources crude oil from around 40 nations, compared to 27 countries in 2006–07.
“This structural diversification built through sustained policy over the years has given India options that many other nations do not have,” he said.