India remains somewhat insulated from the energy crisis caused by the ongoing war in West Asia, largely due to steps taken by the government over the past decade to diversify the country’s energy imports, officials familiar with the matter said on Friday, adding that many other countries have struggled with shortages and rising prices.
“India has been changing its energy mix while aggressively promoting domestically generated renewable energy. If this crisis had hit India a decade ago, its impact would have been devastating as almost all of our oil and gas comes from the same troubled region, with no real alternatives,” said one of the officials cited on condition of anonymity.
To be sure, the government has taken steps to protect India’s supply chains by protecting exports and ensuring uninterrupted imports of essential commodities such as power, fertilizers and edible oils from all available sources – including Russia – so that domestic consumers do not face shortages.
A second official, who requested anonymity, said: “Other countries are facing difficulties. Japan, already saddled with record high public debt, has become one of the most vulnerable economies. The UK saw immediate price rises that led to renewed inflation. Egypt and Turkey face new inflationary pressures. Singapore is dealing with sharp increases in electricity and gasoline costs, while South Korea has resorted to capping fuel prices for the first time in nearly three decades to stabilize its economy.”
Oil prices have remained volatile, keeping the global energy market on edge since US forces launched Operation Epic Fury on February 28. At the center of global attention is the Strait of Hormuz, the most important strait in the world, through which nearly a fifth of the world’s crude oil passes. The officials added that the strait is vital for Indian energy supplies, but the current situation appears manageable.
In a statement in Lok Sabha on Thursday, Petroleum and Natural Gas Minister Hardeep Singh Puri said: “It is worth noting that India previously imported nearly 60% of its LPG requirements from Gulf countries such as Qatar, UAE, Saudi Arabia and Kuwait and 40% is produced locally. Procurement has now been actively diversified, with shipments being secured from the US, Norway, Canada, Algeria and Russia, in addition to available Gulf sources.”
