India is prepared to manage global disruptions in oil and has fuel reserves equivalent to 76-80 days of consumption, union minister of petroleum and natural gas Hardeep Singh Puri said.
In an exclusive interview with CNN-News 18, Puri said he expects fuel prices to come down, while assuring that there was no immediate energy risk to the country. “In the midst of all this crisis, in the midst of all this crisis, you have no dry out taking place in any part of the country and you are still exporting,” the union minister stated.
He further said that he does not expect oil prices to be “this high” for a very long period of time, saying India has enough strategic petroleum reserves, refinery inventories and commercial stocks to provide at least 30-60 days of buffer, even if the Strait of Hormuz remains closed.
“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,” Puri asserted.
Puri says govt diversifying oil supplies
Puri said that the government had already been looking at diversified sources for exports outside the Gulf region, expressing confidence that additional gas supplies from Mozambique would help strengthen energy security.
The union minister also highlighted his discussions with UAE officials, and ADNOC group chief executive Sultan Al Jaber.
“But meanwhile, diversified supplies have also started. (3:00) For instance, you know, we were very fortunate in having friends like the UAE, Sultan Jabbar called me late night, late one evening and he said, look, you wanted, brother, you wanted more LPG cargoes, I’ve got them ready, send the ships,” Puri told CNN News 18. He also underscored the Indian companies’ willingness to deepen their presence in Venezuela.
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However, the minister expressed concerns on the Strait of Hormuz remaining closed or the conflict spreading to or affecting other regions. “On the extreme is the possibility that this might not remain a, it’s very remote, nobody’s talking about it, may remain a conflict not confined to that theater, that you know, you could have problems elsewhere, maybe some other theater starts off, that would be worrying, that would be worrying. The second is that trade of Hormuz remains closed,” he stated.
“Recently someone was discussing what is the worst-case scenario in the Iran war. Supposing the crisis goes on till March 31, 2027. I replied: ‘Wait a minute, then we are in a totally different ball game. That would be global depression,’” Puri added.
