Union Minister of Petroleum and Natural Gas Hardeep Singh Puri assured in an interview that India is prepared to handle disruptions in oil supplies, which are happening globally, and has fuel reserves to last 75-80 days of consumption.
In an interview with CNN-News 18, the Minister said, "In the midst of all this crisis, in the midst of all this crisis, you have no dry out taking place in any part of the country, and you are still exporting." He also talked about his expectation that fuel prices will decrease and that the country faces no immediate energy drought, Hindustan Times reported.
Puri added that oil prices in the country are not expected to remain "this high" for a prolonged period of time. He also said that despite the Strait of Hormuz remaining closed, India has a minimum of 30-60 days of buffer through petroleum reserves, refinery inventories, and commercial stocks.
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The petroleum minister said, "What happens if Hormuz remains closed for another 30 days? We all have domestic situations, we have stocks ... my comfort point used to be 60-60-60, which means 60 days of crude oil, natural gas and LPG - which I do have; I would say that's comfortable".
Govt exploring different sources of oil export
While Puri talked about his strategic discussions with officials from the UAE and ADNOC group chief executive Sultan Al Jaber, he added that the Union government had already been exploring other sources of oil export. He said that along with the Gulf countries, fuel supplies from Mozambique would play a significant role in strengthening energy security, HT reported.
He said. "But meanwhile, diversified supplies have also started. For instance, you know, we were very fortunate in having friends like the UAE, Sultan Jabbar called me late night, late one evening, and he said, Look, you wanted, brother, you wanted more LPG cargoes; I've got them ready, send the ships".
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Puri expresses concerns about Hormuz closure, conflict
But, the Union minister also shared his concerns regarding the closure of the Strait of Hormuz and the Iran conflict spreading to or inversely affecting other regions of the world.
In this respect, Puri said, "On the extreme is the possibility that this might not remain a, it's very remote, nobody's talking about it, may remain a conflict not confined to that theater, that you know, you could have problems elsewhere, maybe some other theater starts off, that would be worrying, that would be worrying. The second is that trade of Hormuz remains closed".
"Recently, someone was discussing - what is the worst-case scenario in the Iran war. Supposing the crisis goes on till March 31, 2027. I replied: 'Wait a minute, then we are in a totally different ball game. That would be global depression,'" he added.
FAQs:
1. How long can India meet its fuel needs with existing reserves?
India has fuel reserves and stocks sufficient for about 75-80 days of consumption, according to Hardeep Singh Puri.
2. What will happen if the Iran conflict continues?
Puri warned that if the crisis continues until March 2027, it could trigger a global depression.
