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India, UAE sign pacts on LPG, strategic oil reserves to cushion US-Iran war impact
The LPG supply deal was signed during Prime Minister Narendra Modi's short visit to the UAE on Friday.
As the world faces an energy crisis triggered by the war between Iran and the United States, backed by Israel, India signed a strategic deal with the United Arab Emirates for the supply for Liquified Petroleum Gas (LPG) to help ease the impact of the war.
India is the world's second largest LPG importer, making the deal a crucial one to ensure enough supply during global tensions. The deal was signed during Prime Minister Narendra Modi's short two-hour trip to the UAE.
Apart from the LPG deal, both the countries also signed a Memorandum of Understanding (MoU) on strategic petroleum reserves. This deal comes just hours after petrol and diesel prices in India were raised by ₹3 each on Friday, May 15.
Also read: Hints by govt, caution by experts: Why this fuel price hike might just be the beginning
These key deals were signed during Modi’s quick stopover in Abu Dhabi en route to the India–Nordic Summit. Modi met UAE President Sheikh Mohamed bin Zayed Al Nahyan (MBZ) during his short visit amid ongoing unrest in West Asia.
India and the UAE also signed an agreement on framework for the strategic defence partnership between the two countries and an MoU on setting up a ship repair cluster in Gujarat's Vadinar.
Why timing of Modi's UAE visit is crucial
Modi's visit to the UAE comes at a critical time as just a few back days, he urged the entire nation to switch to work-from-home in order to save fuel. He also asked people going to the office to wither take public transport or carpool to work for more energy efficiency.
Also read: PM Modi's plane escorted by F-16 fighter jets in UAE airspace; BJP shares clip | WATCH
The prime minister made the appeals to cushion the energy and economical impact of the West Asia war in India framed the measures as patriotic duty.
He also asked people to avoid buying gold and going on foreign visits for about a year in a direct call, indicating the seriousness of the current global circumstances and their impact on India.
Petrol, diesel prices hiked
Days after Modi's appeal to the nation, petrol and diesel prices in India went up by ₹3 each on Friday.
State-run oil companies increased the prices, rising petrol's cost from ₹94.77 per litre to ₹97.77 per litre, and diesel cost from ₹87.67 per litre to ₹90.67 per litre.
However, different cities have different prices based on local taxes.
The increase in fuel prices did not come without warning as petroleum minister Hardeep Singh Puri had earlier hinted that such a price revision was likely.
