India remains somewhat insulated from the energy crisis set off by the ongoing war in West Asia largely due to steps the government took over the last decade to diversify the country’s energy imports, officials aware of the matter said on Friday, adding that several other countries have been hit by shortages and rising prices.
“India has worked to change its energy source mix while strongly promoting domestically generated renewable energy. If this crisis had hit India a decade ago, the impact would have been devastating because almost all our oil and gas came from the same volatile region, with no real alternatives in place,” one of the cited officials said on condition of anonymity.
To be sure, the government has taken steps to protect India’s supply chains by safeguarding exports and ensuring uninterrupted imports of essential commodities such as energy, fertilisers and edible oils from all available sources -- including Russia -- so that domestic consumers do not face shortages.
“Other countries are struggling. Japan, already burdened by record-high public debt, has become one of the most vulnerable economies. The UK has seen immediate price spikes leading to renewed inflation. Egypt and Turkey are facing fresh inflationary pressures. Singapore is dealing with sharp increases in electricity and petrol costs, while South Korea has resorted to imposing a fuel price cap for the first time in nearly three decades to stabilise its economy,” said a second official, who also asked not to be named.
Oil prices have remained volatile, keeping the global energy market on the edge since US forces launched Operation Epic Fury on February 28. At the centre of global concern lies the Strait of Hormuz, the world’s most critical chokepoint, through which nearly one-fifth of global crude oil passes. The strait is vital for India’s energy supplies, but the current situation looks manageable, the officials added.
{{/usCountry}}Oil prices have remained volatile, keeping the global energy market on the edge since US forces launched Operation Epic Fury on February 28. At the centre of global concern lies the Strait of Hormuz, the world’s most critical chokepoint, through which nearly one-fifth of global crude oil passes. The strait is vital for India’s energy supplies, but the current situation looks manageable, the officials added.
{{/usCountry}}In a statement in the Lok Sabha on Thursday, Union minister for petroleum and natural gas Hardeep Singh Puri said, “It should be noted that India was previously importing approximately 60% of its LPG requirements from Gulf countries such as Qatar, UAE, Saudi Arabia, and Kuwait and 40% is produced domestically. Procurement has now been actively diversified, with cargoes being secured from the United States, Norway, Canada, Algeria, and Russia, in addition to available Gulf sources.”