India’s Energy Outlook: Ample Supplies Assured for the Coming Months, Says Hardeep Puri – Lokmat Times

Petroleum and Natural Gas Minister Hardeep Singh Puri recently reassured the public that India has enough petroleum products—like petrol, diesel, jet fuel, and LPG—for the coming months. He made this promise following a review meeting with key members from India’s oil marketing companies, emphasizing that our energy supplies remain stable.

Puri highlighted India’s energy strategy, which aims to balance energy availability, affordability, and sustainability, especially under the leadership of Prime Minister Narendra Modi.

This assurance comes amid increasing global uncertainty, particularly after Israel’s recent attack on Iranian nuclear facilities. Oil prices have reacted sharply, with Brent crude rising over $6 to reach a five-month high of $78 per barrel. Reports suggest that Iran produces around 3.3 million barrels of oil a day, with significant exports, primarily to China.

The geopolitical tensions in the Middle East could affect oil supplies from nations like Saudi Arabia and Iraq, leading to potential spikes in prices. While the ongoing US-China trade conflict adds complexity, it’s worth noting that India does not import Iranian oil.

Puri also mentioned achievements in India’s oil and gas infrastructure. The country now operates 23 refineries with a total capacity of 257 million metric tonnes per year. Additionally, strategic petroleum reserves have been established to help us manage crises effectively. These reserves, located at various sites, can be tapped into when global prices soar.

The volatility in oil markets is expected to continue. However, a recent report from Emkay Global states that with OPEC+ planning a production hike in July, supply in the oil markets should remain stable, even with potential cuts from Iran.

On an economic note, analysts maintain that a $10 increase per barrel of oil can result in a 35 basis point rise in inflation. But even with these fluctuations, Emkay’s predictors see CPI inflation in India averaging lower than the Reserve Bank of India’s estimate.

This dynamic landscape underscores the delicate balance India must navigate in its energy sector, with ongoing global events influencing local prices and supply security.



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