New Delhi: India’s crude supply position is secure, Union Minister for Petroleum and Natural Gas Hardeep Puri said in the Lok Sabha Thursday, adding that this is not the time for ‘rumour-mongering’ or ‘fake narratives’.
“There is no shortage of petrol, diesel, kerosene, ATF or fuel oil. The availability of petrol, diesel, aviation turbine fuel, kerosene, and fuel oil is fully assured. Retail outlets across the country are stocked and supply chains for these products are functioning normally. Additional allocation of PDS Kerosene has been issued to all the States,” he told the Lower House.
He added, “The world has not faced a moment like this in modern energy history. Today is the 13th day since the passage to the Strait of Hormuz through which 20 percent of the world’s crude, 20 percent of the world’s natural gas and 20 percent of the world’s LPG flow was disrupted following the military operation between Iran, Israel and the US.”
Puri’s remarks came in the backdrop of ongoing tensions in West Asia that have triggered fears of an LPG supply disruption in India.
Lauding the efforts of Prime Minister Narendra Modi, the Union minister said before the crisis approximately 45 percent of India’s fuel imports transited through the Hormuz route.
“Thanks to the PM’s outstanding diplomatic outreach and goodwill India has secured crude volumes that exceed what the disrupted Strait of Hormuz would have delivered in the same period. Non-Hormuz sourcing has risen to approximately 70 percent of the crude imports, up from 55 percent before the conflict began,” he said.
With complaints pouring in from several sectors regarding shortage of LPG, the minister said domestic LPG production was ramped up by 28 percent in the last five days and that domestic supply is fully protected.
“In the last five days, LPG production has been increased by 28 percent through refinery directives and further procurement is actually underway. The Modi government’s foremost priority is that the kitchen of India’s 33 crore families, especially the poor and the underprivileged, do not face any shortage. Domestic supply is fully protected and the delivery cycle is unchanged,” Puri said.
Given a detailed account of the situation, the minister said for the first time in recorded history the Strait of Hormuz has been effectively close to commercial shipping.
He told the Lok Sabha: “Despite India having no role in causing the conflict, like many countries, India has to navigate through its consequences. In contrast to how other nations are managing this crisis, places India’s response in its sharpest relief. A country in our neighbourhood has shut all schools for two weeks, moved government offices to four-day work week, ordered 50 percent of public employees to work from home, cut fuel allowance for official vehicles by half and taken 60 percent of government vehicles off the road.”
He added, “This country has experienced the largest single fuel price increase in its history. With petrol up almost 20 percent in a week. In another (case), a neighbour has closed universities early and brought forward the Eid holidays to save fuel. Countries in Southeast Asia have also had to take energy rationing and conservation measures.”
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Puri on LPG, gas cylinders
On the LPG front, the Union minister said procurement has been diversified and additional cargoes are coming in from the US, Canada, Algeria and Russia among others.
“India has sufficient gas production and supply arrangements to sustain this position even in the events of a prolonged conflict. Power generation for every household and industry is fully protected. It should be noted that India was previously importing approximately 60 percent of their LPG requirements from Gulf countries such as Qatar, the UAE, Saudi Arabia and Kuwait and 40 percent is produced domestically. Procurement has now been actively diversified with cargos being secured from the US, Norway, Canada, Algeria and Russia in addition to Gulf sources,” he said.
Puri also said that “non-Hormuz sourcing has risen to approximately 70 percent of crude imports, up from 55 percent before the conflict began”.
India, he said, has expanded its sources of procurement to 40 countries as against 27 in 2006-2007.
Sharing more details on the LPG situation, the minister said domestic supply is fully protected and the delivery cycle remains unchanged.
The standard time for booking domestic LPG cylinders remains 2.5 days, he said, adding that hospitals and educational institutions have been placed on uninterrupted priority supply. “And their access to LPG is fully assured regardless of broader demand conditions. Hoarding and panic booking at the distributor and retail level is driven by consumer anxiety rather than any actual supply shortage. The House should be clear on this: the rush booking pressure in some localities reflects a demand distortion not a production or supply failure,” he explained.
Explaining the need for regulating commercial LPG, the minister said it has been done to prevent black marketing and not to penalise the hospitality sector.
He added, “Commercial LPG is sold at a completely deregulated, over-the-counter market price without any government subsidy. There is no registration system, no booking requirement, and no digital authentication and no delivery confirmation mechanism. Any business or individual can purchase cylinders in any quantity at the point of sale with no government control in normal time.
“In a supply-constraint environment where public anxieties are alleviated, this deregulated structure creates a direct and uncontrolled pathway for hoarding diversions and resale at inflated prices…the government has therefore taken the responsible course to regulate this channel with clear priorities and a transparent allocation mechanism.”
Maintaining that this is not the time for indulging in ‘rumour mongering’ or ‘fake narratives’, the minister said India is navigating the most severe global energy disruption in recorded history.
“Crude supply is flowing, gas is prioritised for homes and farms, LPG production has been stepped up by 28 percent, and consumer prices are held far below what markets and regional competitors would dictate. Schools are open. Every citizen regardless of political affiliation has a stake in that. India must stand united behind the energy warriors behind the institutions managing the crisis and behind the national interest,” Puri said.
(Edited by Amrtansh Arora)
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