Amritsar, June 29: India has managed to maintain its fuel supply during the Hormuz crisis. What is the reason behind this uninterrupted flow without any emergency restrictions? Former diplomat Navdeep Suri has shed light on this issue, praising the government’s strategic approach. He noted that while many countries faced fuel shortages, long queues, and restrictions, India handled the situation with wisdom and foresight.
Navdeep Suri stated, “Different countries have varying methods for setting fuel prices. In some nations, prices are directly linked to the global market, while India adopts a controlled pricing system.” He explained that after the conflict began on February 28, when crude oil prices surged, the government absorbed a significant portion of the increased costs. Oil companies also reduced their profits, and the government provided tax relief to keep petrol and diesel prices stable.
He emphasized that even when crude oil prices soared from approximately $70 per barrel to $126 per barrel, the government bore most of the additional burden. This proactive approach prevented Indian citizens from facing the emergency fuel restrictions seen in many other countries.
Describing the closure of the Hormuz Strait as the worst-case scenario for the global energy market, Suri pointed out, “India relies on imports for nearly 90 percent of its fossil fuel needs, with a large portion coming from Gulf countries. Nevertheless, the government was well-prepared in advance.”
He highlighted that the government’s active energy diplomacy played a crucial role in managing this crisis. Petroleum Minister Hardeep Singh Puri, being a former diplomat himself, brought valuable understanding and experience to the table. Additionally, India’s strong ties with countries like the United Arab Emirates (UAE), Saudi Arabia, and Qatar proved extremely beneficial during this period. The Prime Minister‘s visit to the UAE and the Petroleum Minister’s trip to Qatar during the conflict reinforced bilateral relations.
Suri noted that India secured energy supplies from the UAE, the United States, and new markets in Africa and Latin America, while effectively managing domestic demand.
He compared India’s situation to that of countries like Pakistan, where schools had to close, a four-day workweek was implemented, and severe fuel shortages occurred. In contrast, India experienced relatively normal conditions. He mentioned that in Amritsar, he only observed crowds at petrol pumps due to rumors for a single day. The LPG shortage lasted only two to three days before normalcy returned.
He added that the government established a 25-day interval for LPG cylinder refills for domestic consumers, which was sufficient for most families. Overall, he concluded that India’s entire system functioned effectively during this challenging period.
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