New Delhi: As tensions continue in West Asia, the Indian government is optimistic about its energy supplies. Qatar has assured India that liquefied natural gas (LNG) shipments will start again as soon as shipping routes are safe. Right now, India is in a good position with plenty of fuel stocks and has no plans to increase petrol or diesel prices.
The situation in the region, mainly involving Iran, the U.S., and Israel, has caused disruptions in the Strait of Hormuz. This area is key for global oil and gas transport. Despite the current issues, officials believe that global suppliers are eager to keep supporting the Indian market. “We have surplus LNG and offers from various countries,” they said.
There are hints that shipping activities may soon return to normal. Iran has recently stated it won’t target neighboring countries unless provoked. This could ease concerns about shipping in this vital corridor.
India has proactively diversified its energy sources over the past few years, relying less on crude oil from the Strait of Hormuz. Government sources report that imports from other regions have increased by 10%. Now, about 70% of India’s crude comes from outside this heavily monitored area, compared to 60% before.
To prevent any sudden spikes in fuel prices, the Indian government has committed to keeping petrol and diesel prices stable for now. They have also taken measures in the past, such as reducing excise duties to help consumers cope with rising costs.
In terms of security for its energy supply, India is even considering more LNG imports from other countries, including possibly Russia if the deals are appealing. The Indian Oil Corporation is also securing crude oil from Saudi Arabia, which further strengthens its position.
Regarding liquefied petroleum gas (LPG), officials asserted that any allegations about price hikes are unfounded. The recent adjustments in LPG prices are separate from those of petrol and diesel. Although there were concerns about LPG stock levels, the situation has improved significantly. Currently, domestic LPG prices have seen an increase of Rs 60, but experts note that even with this rise, prices remain lower than market rates. Calculations showed a required increase of around Rs 134, but the government opted for a more modest rise to protect consumers from excessive costs.
Over the past 12 years, LPG cylinder prices have only gone up by about Rs 110. The current pricing structure includes a subsidy of Rs 300 per cylinder for beneficiaries under the Pradhan Mantri Ujjwala Yojana, allowing them to pay around Rs 560 for each cylinder.
This proactive approach helps ensure energy stability in a time of uncertainty. Experts emphasize the importance of diversifying energy sources to safeguard against future geopolitical tensions, which could otherwise lead to more drastic price changes and supply issues.
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