India well-prepared to manage crude volatility, energy security intact: Hardeep Puri

New Delhi: India remains well-prepared to manage any volatility in global crude oil markets amid escalating tensions in West Asia, Union Petroleum and Natural Gas Minister Hardeep Singh Puri said on Wednesday.

In an interaction with IANS, Puri said the government has successfully managed fluctuations in global oil markets over the past several months and will continue to closely monitor the situation.

In addition, the minister asserted that the country’s energy security remains robust due to diversified supply sources and growing efforts towards self-reliance.

“Our constant effort has been, and will continue to be, to manage the situation in the same way we have managed it over the last 100 days. We will try to handle the next 30 or 60 days in the same manner. But if the international situation changes and prices rise sharply, then the issue will have to be revisited,” the minister said.

On concerns over India’s oil supplies amid the ongoing tensions in West Asia, Puri said the country is better positioned today than in the past to deal with potential disruptions.

He noted that around 7 per cent of India’s LPG supplies and nearly 20 per cent of its crude oil imports were routed through the Strait of Hormuz.

“There are different discussions and reports regarding whether the ceasefire may evolve into a broader Iran-US agreement or whether escalation may continue. I do not want to speculate on that,” Puri told IANS.

Highlighting the government’s push towards energy self-reliance, the minister said India has made significant progress in ethanol blending and renewable energy adoption.

Puri said domestic exploration and production activities are expanding alongside growth in biofuels and solar energy capacity.

“Our exploration and production activities are increasing, biofuel blending has gone up and solar capacity is also growing. As a result, we are moving towards self-reliance in the energy sector,” he said.

Moreover, the minister referred to the government’s Samudra Manthan initiative, under which Rs 90,000 crore has been earmarked for drilling new wells and strengthening domestic energy production capabilities.

On fuel prices, Puri said petrol prices in Delhi remain lower than levels seen four years ago despite recent volatility in international crude oil markets.

He attributed this to repeated reductions in central excise duties on petrol and diesel by the Modi government in November 2021, May 2022 and subsequent rounds of duty cuts, along with VAT reductions undertaken by several BJP-ruled states.

Responding to concerns over the reduction in subsidised LPG cylinder eligibility under the Pradhan Mantri Ujjwala Yojana, Puri said the decision was aimed at preventing misuse of subsidies.

He said the government had received credible inputs indicating that some beneficiaries were diverting subsidised cylinders for commercial use or selling them to others, prompting a reassessment of the entitlement structure.

“The government’s priority remains ensuring affordable energy access while improving efficiency and preventing leakages in welfare schemes,” he added.

IANS