As the world faces an energy crisis caused by the war between Iran and the United States, with support from Israel, India signed a strategic agreement with the United Arab Emirates to supply it with liquefied petroleum gas to help mitigate the impact of the war.
India is the world’s second-largest importer of LPG, making the deal crucial to ensuring adequate supplies during global tensions. The deal was signed during Prime Minister Narendra Modi’s short two-hour visit to the UAE.
Apart from the LPG deal, the two countries also signed a memorandum of understanding on strategic petroleum reserves. This deal comes just hours after petrol and diesel prices were raised in India $3 every Friday, May 15.
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These key deals were signed during Modi’s quick stopover in Abu Dhabi on his way to the India-Nordic summit. Modi met UAE President Sheikh Mohammed bin Zayed Al Nahyan during his short visit amid the ongoing unrest in West Asia.
India and the UAE also signed an agreement on the Strategic Defense Partnership Framework between the two countries and a memorandum of understanding on establishing a ship repair complex in Vadinar, Gujarat.
Why is the timing of Modi’s visit to the UAE so important?
Modi’s visit to the UAE comes at a critical time, as a few days ago he urged the entire nation to switch to working from home in order to save fuel. He also asked people going to their offices to use public transportation or carpools to work in order to increase energy efficiency.
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The Prime Minister made appeals to mitigate the energy and economic impact of the West Asian War on India, terming the measures as a national duty.
He also asked people to avoid buying gold and going abroad for about a year in direct contact, pointing out the seriousness of the current global conditions and their impact on India.
Gasoline and diesel prices rose
Days after Modi’s appeal to the nation, petrol and diesel prices rose in India $3 for every Friday.
State-run oil companies raised prices, causing the cost of gasoline to rise from $94.77 per litre $97.77 per liter and the cost of diesel is from $87.67 per litre $90.67 per litre.
However, prices for different cities vary based on local taxes.
The increase in fuel prices did not come without warning, as Petroleum Minister Hardeep Singh Puri had previously hinted that such a price adjustment was possible.
