Union Petroleum and Natural Gas Minister Hardeep Singh Puri said that India maintains sufficient total oil and gas stockpiles to sustain operations for 76 to 80 days. He added that the country expects a steady rise in gas imports from Mozambique in the near future.
Speaking with CNN-News18 on Monday, Puri expressed concern that any escalation in West Asia could trigger fresh complications globally. "It may remain a conflict not confined to that theatre ... you know you could have problems elsewhere. Maybe some other theatre starts off. That would be worrying," Puri said, referring to the crisis in the Middle East.
His statement comes as the US-Iran conflict reached the 100-day mark on Sunday, with little clear sign of an agreement to end the conflict permanently. The conflict has led to a sharp surge in global energy prices and created supply disruptions due to the blockade at the vital Strait of Hormuz. "What happens if Hormuz remains closed for another 30 days? We all have domestic situations, we have stocks ... my comfort point used to be 60-60-60, which means 60 days of crude oil, natural gas and LPG - which I do have; I would say that's comfortable," he said.
Furthermore, Puri said that India's readiness to handle energy supply shocks for up to two months, even during a total shutdown of the Strait of Hormuz. While short-term contingencies and international partnerships safeguard India currently, Puri warned that a prolonged multi-month conflict would severely alter the situation.
"Two-three things are happening here. One extreme scenario is that the conflict expands beyond the theatre. That would be worrying. The second is that (if) Strait of Hormuz remains closed ... our diversified supplies have also started. We are very fortunate to have friends like the UAE ... the UAE offered LPG cargoes directly to us. Hence, I think we can handle it," he said.
Puri also anticipates a decline in petroleum and gas costs in future as ample supplies remain intact despite the ongoing US-Israeli conflict. He added that crude values cannot sustain these elevated levels long-term and are projected to soften soon. After a long freeze, oil marketing companies in India increased petrol prices by 7.8% and diesel prices by 8.6% last month.
