As the Middle East faces escalating tensions, India’s response to the oil crisis involves key emergency steps.
Middle East Tensions Cause Rising Oil Prices
The ongoing conflict in the Middle East has triggered a global oil crisis. Recently, Iran launched drone attacks on Saudi Arabia’s oil refineries. These actions have led to increased tensions in the region, affecting global oil supplies.
The Strait of Hormuz, which is crucial for global oil trade, has also become a hotspot for attacks. This vital passage handles about 20% of the world’s energy imports. In particular, India imports 50% of its crude oil through this route.
Oil prices have been rising steadily. On Monday, crude oil prices surged by over 10%. By Tuesday, prices increased further by 2.55%. Experts predict that if the conflict escalates, oil prices could exceed $100 per barrel, exacerbating the global oil crisis.
India’s Preparedness to Tackle the Crisis
India has devised a plan to manage the impending oil shortage. According to Economic Times sources, India is considering several emergency measures. These include halting petrol and diesel exports, increasing crude oil imports from Russia, and rationing LPG.
India currently imports nearly two-thirds of its LPG needs. The government plans to prioritize domestic supply and mitigate any disruptions. In response to the escalating situation, India has started increasing its stock of crude oil.
Emergency Measures for Oil Shortage Management
The Indian government is focusing on oil export restrictions. India exports about one-third of its petrol and a quarter of its diesel. This strategy aims to preserve domestic oil supplies and ensure availability for critical sectors.
Industry estimates show that India’s onshore inventory could last for less than two weeks. However, refiners like Indian Oil, HPCL, and BPCL have started increasing LPG production to manage any shortage. India’s crude oil reserves are expected to last 20-25 days.
Global Oil Price Surge
On Monday, global oil prices saw a significant increase. Brent crude futures rose by 10%, reaching $80 per barrel. European gas prices surged by over 40%, due to attacks on Saudi Arabia’s Ras Tanura refinery and Qatar’s LNG plant. The closure of the Strait of Hormuz further exacerbated the situation.
Experts’ Opinion on the Conflict’s Duration
Experts believe that while Iran’s military and technology are less advanced compared to the US-Israel alliance, the conflict is unlikely to last long. However, US President Donald Trump has indicated that the war could last for four weeks.
India’s Oil Ministry Monitoring the Situation
India’s Ministry of Oil, under the leadership of Hardeep Puri, is closely monitoring the situation. The government has assured the public that all necessary steps will be taken to ensure the availability and affordability of petroleum products in the country.
