Union minister Piyush Goyal on Saturday said India is well placed to handle any disruption in crude oil and fuel supplies despite the worsening Middle East crisis, asserting that there has been “absolutely no disturbance” in petrol, diesel or aviation fuel availability, while also indicating that the government will unveil a “concrete agenda” next week to support exporters hit by the conflict.Speaking at a CNBC-TV18 India event, Goyal said the government has sufficient stocks and has taken precautionary steps as gas shipments and shipping routes face disruption due to the conflict and the effective closure of key maritime routes.“On crude oil, on fuel, we are pretty well placed. We have good stocks in hand. There’s been absolutely no disturbance of any sort on the crude or the fuel front, petrol, diesel, aviation fuel,” Goyal said, according to news agency PTI.He added that kerosene production has been ramped up to provide an alternative cooking option if LPG supplies are delayed. “Incidentally, we are also covering through imports from diversified sources the requirements of LPG and LNG,” he said.
Government shifts to alternate energy sources
Goyal said India is being forced to move to more distant sources for gas imports as traditional shipping routes become more difficult.“The shipping times were barely three or four days, at best seven days, when these shipments of gas came into India,” he said, adding that India is now looking at “significantly far away” alternative suppliers such as Canada, the US and possibly Russia to meet domestic demand.He described the current geopolitical turmoil as a “wake-up call” for India, but said the country had historically turned crises into opportunities. While acknowledging short-term economic pressure, Goyal remained upbeat.“My own sense is that there will be a certain shortfall in economic activity in the short run, but we’ll make up for that in the months to come. (But) We will continue to be the fastest-growing large economy in the world for at least two more decades,” he said.He also said the rupee is under “stress”, but there is “no reason for anyone to panic”, expressing confidence that it would recover more gradually, possibly after the war ends.
Exporters to get insurance support, action plan
On trade, Goyal said the commerce ministry is in daily touch with export promotion councils and has activated a 24-hour helpline to address issues faced by exporters.“We’ve been engaging with all the export promotion councils on a daily basis. We have a 24-hour helpline ready to resolve any issues,” he said.He added that the ministry has worked out schemes to create insurance cover for export cargo that may be damaged, lost or “inordinately delayed” due to the Red Sea disruption, the Strait of Hormuz crisis or shipping line difficulties.“We are doing the inter-ministerial consultation. Next week we’ll be coming out with some more concrete action agenda to support the exporters,” Goyal said.
Puri had also assured House on fuel, gas supplies
Earlier, petroleum minister Hardeep Singh Puri had told the Lok Sabha on Thursday that India remains prepared for prolonged disruption in global energy supplies caused by the Middle East conflict.Puri said commercial shipping through the Strait of Hormuz, a route that typically carries about 20 per cent of the world’s crude oil, natural gas and LPG, has effectively shut, but India has increased non-Hormuz sourcing of crude to around 70 per cent from 55 per cent before the conflict. He also said India now imports oil from 40 countries, up from 27 in 2006-07.“There is no shortage of petrol, diesel, kerosene, ATF or fuel oil,” Puri had said, while also noting that domestic LPG production had been stepped up by 28 per cent and gas supplies were being prioritised for households, transport and agriculture.
