New Delhi: India’s energy supplies remain “secure” despite major disruptions in global energy routes caused by the ongoing war in West Asia, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri informed the Lok Sabha on Thursday.
Making a statement in the House, the minister said the situation was unprecedented in modern energy history, pointing to the disruption of shipping through the Strait of Hormuz. “The world has not faced a moment like this in modern energy history. Today is the 13th day since the passage through the Strait of Hormuz… was disrupted following the military operation between Iran, Israel and the US.”
“For the first time in recorded history, the Strait of Hormuz has been effectively closed to commercial shipping,” Puri said. About 20% of the world’s crude oil, natural gas and LPG normally flows through the Strait.
Despite the disruption, Puri assured the House that India’s fuel supplies remain stable due to diversification of import sources and proactive diplomatic engagement. “India’s crude supply position is secure, and volumes secured exceed what Hormuz would have delivered,” he said.
He informed Parliament that before the crisis around 45% of India’s crude imports transited through the Hormuz route, but the government has successfully increased sourcing from other routes. “Non-Hormuz sourcing has risen to approximately 70% of crude imports, up from 55% before the conflict began,” he said.
Highlighting India’s diversified energy procurement strategy, Puri said the country now imports crude from 40 countries compared with 27 in 2006-07. “This structural diversification… has given us options that other nations now find themselves without,” he said, adding that refineries are currently operating at very high capacity.
“There is no shortage of petrol, diesel, kerosene, ATF or fuel oil. Retail outlets across the country are stocked and supply chains for these products are functioning normally,” he said.
On natural gas supply, the minister said domestic production of around 90 MMSCMD is being supplemented with imports, even though some Gulf supplies have been affected by a force majeure declaration from a major Qatari facility. To manage supply, the government has prioritised allocation. “Domestic piped gas to homes and CNG for vehicles receive 100% supply with no cuts,” he said, adding that industrial consumers will receive up to 80% of their previous six-month average while fertiliser plants will receive up to 70%.
The government has also stepped up imports of liquefied natural gas (LNG) through alternative routes. “Large LNG cargoes are arriving on an almost daily basis through alternative supply routes,” the minister said, assuring that power generation for households and industry remains fully protected.
Addressing LPG availability, Puri said India previously imported about 60% of its LPG from Gulf countries but has rapidly diversified procurement. Cargoes are now being sourced from countries including the United States, Norway, Canada, Algeria and Russia.
He added that refinery directives have already increased domestic LPG output significantly. “In the last five days, LPG production has been increased by 28% through refinery directives,” he said. The average delivery time for domestic LPG cylinders remains unchanged at 2.5 days, he added.
To prevent black marketing in the commercial LPG segment, the government has temporarily regulated supply. “In a supply-constrained environment… this deregulated structure creates a direct and uncontrolled pathway for hoarding,” Puri said. The government has therefore allocated 20% of the average monthly commercial LPG requirement through a controlled mechanism coordinated with state governments.
The minister also said alternative fuels such as kerosene, biomass and RDF pellets have been permitted temporarily for commercial establishments to reduce pressure on LPG supplies.
On prices, Puri said the government has shielded consumers from sharp global increases by absorbing a large share of the costs and approving Rs 30,000 crore in compensation to oil marketing companies.
(Cover photo by Marvin Castelino on Unsplash)