Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Friday said that India has managed to maintain stable energy supplies and shield consumers from global price shocks due to severe disruption resulting from the closure of the Strait of Hormuz.
He was speaking at the inauguration of the Vibrant Gujarat Regional Conference in Surat. A large number of industrialists from India and international delegates are taking part in the two-day event, the focus of which is industrial growth, especially in the textile and diamond sector. Surat is known across the world as the “Diamond City of India” and is also famous for its man-made fiber.
The minister said that despite a 20-30% disruption in global supply chains, the Indian government has shielded its citizens from price shocks.
Puri underlined that they have not revised the retail petrol and diesel prices and have not allowed panic to become a policy. When global supply faces a disruption of 20-30% on important routes and products, then no country can remain insulated from the shock, he pointed out. With the rise in freight costs, rise in insurance costs, and delays in cargo, every major country is forced to make hard choices, the minister said.
He also said that for the last four years, despite volatility in global crude and product markets, Indian consumers have been shielded at the retail pump. For 60 days during this crisis, while crude import costs rose sharply and the region faced severe disruption, that shielding has continued, he added.
This, he said, stands in stark contrast to other global economies; for instance, fuel prices rose by 99.8% in Germany, while petrol prices increased by over 35% in neighbouring island nations.
Puri noted that the government chose to absorb the shock at the fiscal level rather than passing costs on to consumers, ensuring that “panic did not become policy.”
To maintain energy security, Puri said India has expanded its crude sourcing from 27 countries to 41. Additionally, domestic LPG production was ramped up by 60%, increasing from 36,000 to 54,000 metric tons per day. He also highlighted the success of the Ujjwala scheme, which recently marked its 10th anniversary, benefiting over 100 million households.
TOPICSCrude oilThis article was first uploaded on May one, twenty twenty-six, at nineteen minutes past seven in the evening.