India Shields Itself from Crude Supply Disruptions Amid West Asia Crisis
India's Petroleum Minister Hardeep Singh Puri said on Monday that the country has insulated itself from disruptions to crude oil and natural gas supplies caused by the West Asia crisis. Despite volatility in the Strait of Hormuz affecting around 40% of energy movement, India has so far navigated this uncertainty.
Puri noted that there is no global shortage of crude oil, with approximately 104 million barrels available daily against a consumption rate of about 94 million barrels. However, he warned that logistics and distribution remain a key challenge for global energy markets.
India has expanded its crude sourcing network to 41 countries from 27 earlier, reducing its dependence on supplies from any single region. Puri expressed concern over LPG availability, as the country's dependence on the fuel has risen sharply with domestic LPG connections increasing from 14 crore in 2014 to 33.5 crore.
The minister emphasized that the government's approach is to ensure 'availability at all times along with affordability.' He announced that central excise duties on fuel have been cut three times, in November 2021, May 2022, and March 10, lowering petrol and diesel prices by Rs 10 per litre.