‘India has enough oil inventory to deal with West-Asia conflict’:Petroleum Minister Puri says Centre has no plans to increase petrol diesel prices

Amid rising tensions in West Asia and the Iran-Israel war, Hardeep Singh Puri, Minister of Petroleum Natural Gas, informed the media that “the country is well stocked with crude oil and inventories of key petroleum products including petrol, diesel and ATF to deal with short-term disruptions arising from the Middle East.” Earlier, government sources had said that India currently has crude oil and refined oil stock available for only 25 days. The government is continuously monitoring the situation and is in talks with alternative countries for crude oil, LPG, and LNG to ensure there is no disruption in the supply chain. In fact, Iran has announced the closure of the Strait of Hormuz. Additionally, Iran’s military has warned that if any ship passes through this route, it will be set on fire. Located between Oman and Iran, this route is considered the most crucial for the world’s oil business. The closure of the Hormuz route will affect many countries worldwide, with Asian countries, including India, being the most impacted. Due to the closure of this route, crude oil prices in the global market could rise above $100 per barrel. Currently, Brent crude prices have increased by about 2.6% to around $80 per barrel. No plans for increase in petrol-diesel prices yet It is a relief for the common people that the Government of India currently has no intention of increasing petrol-diesel prices. According to sources, despite fluctuations in the international market, efforts are being made to keep prices stable at the domestic level. The Petroleum Ministry had earlier said that all necessary steps will be taken to ensure availability and affordable prices of major petroleum products in the country. Petroleum Minister held review meeting on Monday Earlier on Monday, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri held a high-level meeting with senior ministry officials and government oil companies. The meeting reviewed the supply situation of crude oil and LPG. The ministry posted on social media platform X that they are closely monitoring the changing circumstances. Government vigil on impact on exports-imports Not just oil, but the government is also active regarding the impact on trade. The Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce held a stakeholder consultation meeting. It discussed how the geopolitical tensions in West Asia could affect India’s exports-imports and cargo flow. Challenge of increasing shipping routes and insurance costs In the meeting, representatives of logistics operators and shipping lines informed that due to current tensions, ships’ routes are being changed, which has increased transit time. Additionally, there has been an increase in freight and insurance costs. The government has emphasized making documentation and payment processes easier for exporters and importers and reducing delays in cargo movement. India’s large dependence on West Asia India imports about 85% of its crude oil needs, a large portion of which comes from West Asian countries. This is why any disturbance in this region directly affects India’s economy and energy security. The government is now increasing focus on alternative routes like Russia and other African countries to reduce dependence on any one region.