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India’s crude and gas supplies secure despite West Asia conflict, says Centre
India’s crude oil and gas supplies remain secure despite disruptions caused by the conflict in West Asia, the Union government said on Wednesday.
Sujata Sharma, the joint secretary of the petroleum and natural gas ministry, said that domestic liquified petroleum gas consumers would receive their cylinders within about two and a half days of booking them and warned against panic buying.
Domestic LPG production has risen by 25%, prioritising household consumers, while non-domestic supplies are directed to essential sectors such as hospitals and educational institutes, she reiterated.
She said that domestic LPG prices have risen because of global supply pressures, adding that without the government’s intervention, they would have been significantly higher.
In Delhi, a 14.2 kg domestic cylinder now costs Rs 913, while a 19 kg commercial cylinder is priced at Rs 1,883.
India consumes about 55 lakh barrels of crude oil per day, the official said, adding that the quantity secured on Wednesday exceeded what would normally arrive through the Strait of Hormuz “during this period”.
Nearly 70% of crude imports now come through routes outside the Strait of Hormuz, compared with 55% earlier, reducing the risk of disruption, the official said.
“Our refineries are operating at the highest capacity utilisation,” Sharma said. “Some are operating at more than 100% of their capacity.”
Currently, two crude oil cargoes and two liquefied natural gas shipments are on their way to India, the official added.
The comments came as Japan and Germany on Wednesday announced that they will tap into their oil reserves amid fuel supply disruption and rising global oil prices triggered by the conflict.
Global oil prices crossed the $100 per barrel-mark on Monday. This was the highest level since July 2022.
By Wednesday, the price of benchmark Brent crude had fallen to about $90 per barrel. It was about $72.8 per barrel on February 27, a day before the conflict started.
The escalating tensions have raised fears of disruption to shipments through the Strait of Hormuz. The narrow waterbody connects the Gulf to the Arabian Sea. About 20% of the global petroleum supply passes through the maritime chokepoint.
Meanwhile, the Ministry of External Affairs confirmed on Wednesday that two Indians had died and one remains missing amid the conflict in West Asia.
Ministry of External Affairs Spokesperson Randhir Jaiswal said the casualties occurred when Indian citizens aboard merchant vessels came under attack in the conflict-affected waters, with several others also getting injured, including one in Israel and another in Dubai.
Jaiswal said that the safety and welfare of India’s diaspora, numbering about 10 million in the Gulf Cooperation Council countries, remains the government’s “utmost priority”.
The conflict in West Asia began when Israel and the United States launched a joint operation to “degrade the capabilities” of the Iranian government. Tehran retaliated by striking Israel and US military bases in the region, and targeting major cities in other Gulf countries and some ships.
The joint attacks by Israel and the US on Iran came amid tensions between the three countries over Tehran’s nuclear programme. Washington acts as a guarantor of Israel’s security. Israel has been claiming that Iran is close to obtaining a nuclear weapon, which could alter the regional security balance.
Tehran has long maintained that its nuclear programme is for civilian purposes.
Source: Scroll
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