India Vows to Ensure Energy Stability Amid Middle East Turmoil
India's Oil Ministry has pledged to maintain affordable and available petroleum products for consumers amidst escalating Middle East tensions. India, importing 85% of its oil, heavily relies on routes like the Strait of Hormuz. Experts warn of significant price surges and supply disruptions if the conflict prolongs, posing serious challenges for the nation. The government is actively monitoring the situation and is reportedly exploring renewed Russian crude imports to bolster supply security.
India's Oil Ministry has committed to taking all necessary steps to ensure the availability and affordability of petroleum products for its consumers, directly addressing the escalating crisis in the Middle East. This pledge comes as India, a major energy importer, depends on foreign sources for 85% of its oil and nearly half its natural gas. A significant portion of these vital supplies, approximately half of its oil and 55% of LNG shipments, transits through the critical Strait of Hormuz. Middle Eastern nations alone account for about 55% of India's crude imports, totaling around 2.74 million barrels per day as of January. The situation is further complicated by Iran's threats to target ships in the Strait of Hormuz, a choke point for nearly 20% of global oil shipments. Experts warn that a prolonged conflict could push oil prices to $95 per barrel or higher, with Ajay Shrivastava, former Director General of Foreign Trade, noting the difficulty in rerouting or replacing such volumes, particularly for Asian economies given sanctions on Russian oil. Omair Anas, an international relations expert, also highlighted the potential for a severe energy supply and price crisis impacting India. Amidst these geopolitical challenges, India, which maintains distinct ties with Gulf nations like Iran, the UAE, Qatar, and Oman, is reportedly looking to revive large purchases of Russian crude, weeks after facing US pressure to reduce such imports. The Ministry of Petroleum and Natural Gas is continuously monitoring the evolving situation to safeguard India's energy security.
