Global oil prices surge amid Israel-Iran conflict; India confident of fuel stability

In the wake of the escalating Israel-Iran conflict, global crude oil prices have witnessed a sharp spike of nearly 4%, with rates touching $77 per barrel as of today. This sudden surge has raised concerns across the world about the stability of fuel supply and its impact on energy prices. However, the Indian government has assured citizens that there will be no immediate disruption in crude oil or LPG supplies in the country.

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India currently imports crude oil from over 40 countries, a significant increase from the earlier 27, which has helped diversify its supply chain and reduce dependency on any single region. Although a potential blockade of the Strait of Hormuz, a key oil transit chokepoint, could impact logistics, the Indian government is actively exploring alternate routes for oil transportation.

In a proactive move to safeguard national energy security, India has built underground strategic petroleum reserves, including one in Udupi district, Karnataka. These reserves are capable of meeting the country’s crude oil needs for up to two months. This buffer provides a safety net against any sudden global supply shocks due to geopolitical tensions.

The government has also clarified that the LPG supply in India remains unaffected, as the country has adequate domestic production to meet its needs. While the Organization of the Petroleum Exporting Countries and allies (OPEC+) typically produce around 120 million barrels of oil per day, the current output has dropped to 97 million barrels daily due to the ongoing conflict.

The duration of the Israel-Iran war remains uncertain, but India is preparing for all outcomes to ensure its energy demands are consistently met.