Union minister Hardeep Singh Puri on Friday said India has managed to maintain stable energy supplies and shield consumers from global price shocks despite a severe disruption triggered by the closure of the Strait of Hormuz. Addressing the Vibrant Gujarat Regional Conference (VGRC) for South Gujarat here, he said despite 60 days into energy supply disruption due to the West Asian crisis, India stands strong, and added that the country absorbed the global shock at the fiscal level instead of passing it on to consumers, supported by long-term planning. The government has been monitoring the supply of crude oil, LNG, LPG, petrol, diesel and aviation fuel daily for over 60 days since the crisis began, ensuring uninterrupted availability across the country, the Petroleum and Natural Gas Minister said. "When a global supply chain faces disruption of 20 to 30 per cent on important routes and products, no country can be insulated from the shock. Freight costs rise, insurance costs rise, cargos are delayed, and every important country is forced to make hard choices," Puri said in his address.
Despite a sharp rise in global crude prices, India has not revised retail petrol and diesel prices in the last 60 days, he said. "Sixty days into the disruption, India is standing strong. Under the leadership of Prime Minister Narendra Modi, India has not allowed Indian kitchens to run short. We have not revised retail petrol and diesel prices. We have not allowed panic to become policy," the minister added. In India, there has been zero increase at the retail pump during this crisis period, even as global prices surged significantly, he said. Several countries witnessed steep increases in fuel prices between February 28 - when closure of the strait started - and April 23, including a rise of over 40 per cent in neighbouring regions, while diesel prices in the United States peaked at a 58 per cent increase, he said. Puri also noted that fuel prices have gone up significantly across Europe. "In the United Kingdom, diesel prices went up by 26 per cent and and petrol prices 11 per cent. In Germany and Western Europe, fuel prices have shot up by 19.8 per cent, while overall EU diesel prices rose by 19.1 per cent and petrol 10.6 per cent," Puri said.
But India absorbed the global shock at the fiscal level rather than passing it on to consumers, supported by long-term planning and timely interventions, according to him. "As far as the government and our commitment to consumers is concerned, there has been a zero increase - not only in the last 60 days, but also over the last four years" he said. He refuted claims that the Modi government did not increase prices due to the assembly elections in some states. "Many of our colleagues say that we have kept prices under control because we have an election. We have had many elections in the last four years. If the time comes, the government will take the necessary decisions, but the PM's commitment to the 33 crore households getting piped gas remains paramount," he said. Preparations made over the previous decade to tackle such energy crises were activated exactly when needed during the disruption, he added. As part of its strategy, India diversified crude sourcing from 27 countries to 41 and expanded LPG procurement to include the United States, Norway and Algeria, reducing dependence on traditional supply routes affected by the crisis, according to him. Domestic LPG production was ramped up by 60 per cent, scaling from 36,000 metric tonnes to 54,000 metric tonnes per day, while consumption was optimised by shifting industrial users from LPG to piped natural gas, ensuring that household demand remained unaffected. "Overall daily consumption was reduced to 80,000 metric tonnes by strategically shifting industrial users from LPG to LNG (piped gas) and incentivizing natural gas usage" he said.
Puri said a coordinated effort under 'Operation Urja Suraksha' brought together oil marketing companies, ministries, state governments and global suppliers. Oil companies absorbed under-recoveries, while excise duty cuts and export levies were used to stabilise domestic markets. Retail prices in Delhi were maintained at Rs 94.77 per litre for petrol and Rs 87.67 per litre for diesel, he added. "While India is often labelled as purely import-dependent, it domestically produces 60 per cent of its LPG requirement and about 50 per cent of its natural gas requirement. India is the world's third-largest refiner and the fifth-largest exporter of petroleum products, shipping more than 60 million tons annually to global markets," he said. Emphasising Gujarat's role, Puri said the state is central to India's energy ecosystem, with four refineries processing 101.9 million metric tonnes per annum - accounting for nearly 40 per cent of the country's total refining capacity. Gujarat also hosts four LNG terminals with a combined capacity of 32.7 million metric tonnes and is supported by a 4,800-km gas pipeline network, making it a key hub for energy distribution and consumption, he said. Puri said India's ability to add value to imported crude through its strong refining and downstream capabilities has helped it emerge as a major energy processing centre. "India's energy backbone is ready. Gujarat's industrial ecosystem is ready. The next chapter of India's value chain story will be written first in places such as South Gujarat, where energy security, enterprise, and technology meet on the ground," he said.