India Warns of Supply Challenges as West Asia Crisis Escalates
India's petroleum and natural gas minister Hardeep Singh Puri has warned that the ongoing West Asia crisis may worsen, posing supply challenges for the country. The tensions between the US and Iran have escalated in recent weeks, with potential disruptions to global oil supplies.
Puri said India had successfully navigated the crisis so far, but an escalating conflict could create difficulties going forward. He noted that while the global supply of 102 million barrels per day exceeds demand, closure of key chokepoints like the Strait of Hormuz and Bab-el-Mandeb would create challenges for India.
India's robust refining capacity of 267 million tonnes per annum has helped ensure fuel availability despite supply challenges. The country plans to increase its refining capacity to 320 mtpa by 2030, with several countries including Saudi Arabia and the UAE showing interest in investing in upcoming refineries.
Puri also highlighted that India is exporting around 1 million barrels of refined fuel products, despite export bans imposed by countries like Russia and China. The minister emphasized that India will continue to export petroleum products under contractual commitments.