'India has enough...energy supplies': Hardeep Puri amid Middle East tensions
What's the story
India, the world's third-largest oil importer and fourth-largest gas buyer, has enough energy supplies to last several weeks. The country continues to receive supplies through multiple routes, Oil Minister Hardeep Singh Puri said. His statement comes amid rising tensions in key global energy supply regions. He added that the government is closely monitoring the evolving geopolitical situation in the Middle East.
Supply diversification
India has diversified its energy supply routes
Puri said that under Prime Minister Narendra Modi's leadership, India has diversified its energy supply routes over the years. He said a significant portion of India's supplies no longer pass through the Strait of Hormuz, a vital transit point for Middle Eastern oil. This diversification includes sources from Russia, the United States, and Brazil—options that can easily compensate for any disruptions.
Diverse sources
Russian oil not dependent on Strait of Hormuz
Russian oil is logistically separated from the Strait of Hormuz and flows through the Suez Canal, Cape of Good Hope, or Pacific Ocean. Even though US, West African, and Latin American supplies are more expensive, they are becoming increasingly feasible backup options for India. "Our Oil Marketing Companies have supplies for several weeks and continue to receive energy supplies from several routes," Puri said.
Price surge
Global oil prices surge to highest levels since January
Global oil prices have surged to their highest levels since January after Israel's airstrikes on Iran. The benchmark Brent crude rates rose over 10% to $77 a barrel. Despite this spike, oil prices remain more than 10% lower than last year's levels and are far below the over $100 per barrel rates seen in early 2022 after Russia invaded Ukraine.
Import statistics
India imports over 85% of its crude oil
India imports over 85% of its crude oil and nearly half of its natural gas requirements. More than 40% of these imports come from the Middle East. Russia is India's largest supplier of crude oil, which is refined into fuels like petrol and diesel. Qatar supplies most of India's natural gas, used for fertilizer production, electricity generation, CNG conversion for vehicles, and cooking in households.
Supply readiness
India ready to increase crude supplies from other sources
Puri also said that India is ready to increase crude supplies from other sources if necessary. "We are in touch with all possible actors... It is our hope, and we all expect that the situation will result in calm and de-escalation rather than further escalation," he said. This comes after Iranian President Masoud Pezeshkian briefed Indian Prime Minister Narendra Modi about the conflict between Iran and Israel.