- India successfully navigated energy supply disruptions amidst global challenges.
- LPG supply critical; India increased production, domestic connections surged.
- India’s energy demand growing; GOBARdhan scheme launches October 1.
Union Minister Hardeep Singh Puri on Monday said India had so far successfully navigated disruptions to crude oil and natural gas supplies caused by the West Asia crisis and disruptions in the Strait of Hormuz, while acknowledging that the global energy situation remained challenging.
Speaking at an event organised by the Merchants’ Chamber of Commerce and Industry, Puri said India had managed to insulate itself from the turbulence but would continue to face challenges going forward.
“So far we have navigated that uncertainty. In fact, I would say we have insulated ourselves from the turbulence,” Puri said.
“Going forward, it constitutes a challenge. But I can assure you, we won’t let things get out of control,” he added.
Global Energy Supply Not The Main Concern
Addressing concerns over international supply disruptions, Puri said there was no global shortage of energy as such, with around 104 million barrels of crude available daily against global consumption of about 94 million barrels.
He said the principal challenge was logistics and distribution, particularly through volatile transit routes such as the Strait of Hormuz.
The minister said the current distribution of routes and the West Asia crisis were affecting around 40 per cent of energy movement.
“Every challenge, every crisis, poses a challenge. Every challenge has in it an opportunity, and that opportunity we will utilise,” Puri said.
India Diversifies Crude Sourcing
Puri said India had diversified its crude sourcing network to 41 countries from 27 earlier, reducing its exposure to disruptions in any particular region.
He noted that Qatar, the UAE and Saudi Arabia, three of India’s major energy suppliers, are located in or around the conflict zone caused by the war on Iran.
The minister also highlighted the risks of rerouting crude shipments through the Red Sea, where Houthi attacks could pose a threat to shipping lines.
LPG Supply Remains Key Concern
Puri identified LPG availability as his most critical concern, particularly as India’s dependence on LPG has increased sharply.
He said the number of domestic LPG connections had risen from 14 crore in 2014 to 33.5 crore.
To strengthen supplies, India has increased daily domestic LPG production from 34,000 metric tonnes to 54,000 metric tonnes, while also encouraging consumers to switch to alternative sources where possible.
Puri said the government’s approach was to ensure both availability and affordability.
He also recalled that central excise duties on fuel were cut three times — in November 2021, May 2022 and March 10, 2026. He said the latest reduction brought down petrol and diesel prices by Rs 10 per litre.
Energy Demand Growing At Three Times Global Average
Puri said public sector oil marketing companies were facing under-recoveries of around Rs 530 crore per day, with the government providing financial support to them.
India’s energy demand is currently growing at three times the global average, he said, driven by the country’s robust economic performance.
The petroleum sector contributes around 19 per cent of total tax revenues, Puri said, adding that any destabilisation in energy management could have a significant impact on the wider economy.
GOBARdhan Scheme To Be Unveiled On October 1
Meanwhile, Puri said the GOBARdhan (Galvanising Organic Bio-Agro Resources Dhan) Scheme will be unveiled on October 1.
The scheme is a unified national circular bioenergy initiative backed by a Rs 23,731 crore outlay to convert cattle dung, crop residue and municipal organic waste into clean Compressed Biogas (CBG) and organic manure.
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