Prime Minister Narendra Modi met senior cabinet colleagues on Tuesday (March 10) and asked them to ensure that Indian consumers do not suffer from the impact of the conflict between the United States, Israel and Iran on the supply and price of petroleum products, news agency PTI reported.
Oil prices jumped sharply amid rising tensions in West Asia following US and Israeli attacks on Iran, fueling concerns over potential shortages of petroleum products, including liquefied petroleum gas (LPG), in India.
Sources said PM Modi is actively ensuring that Indian consumers do not bear the brunt of higher oil prices as India is a net importer of oil and natural gas.
Sources also reportedly quoted the prime minister as telling the ministers to work in coordination to ensure that there is no shortage of petroleum products and LPG.
Who did the prime minister meet?
According to reports, Prime Minister Narendra Modi met External Affairs Minister (EAM) S Jaishankar, Petroleum Minister Hardeep Singh Puri, Finance Minister Nirmala Sitharaman and Commerce Minister Piyush Goyal. During the meeting with the Union Minister, PM Modi discussed the energy situation of the country.
Sources said India, which sources much of its energy products from West Asia, has now diversified its purchases to other countries as well, namely the US, Russia, Venezuela, Australia and other Oceanic countries.
Amid the crisis in West Asia, India has announced that LPG, CNG and piped gas will take precedence over all other users of natural gas as the government adjusts allocations to ensure uninterrupted supply to households and the transport sector.
The conflict in West Asia, which has spread to include as many as seven other countries in the Middle East, has disrupted up to 30% of India’s gas supplies. As a result, the petroleum ministry has directed through a gazette notification that available gas be diverted from non-priority sectors to key users.
India meets half of its 191 million standard cubic meters per day (mmscmd) gas consumption through imports. With the cessation of tanker movement through the Strait of Hormuz, about 60 mmscmd of gas from the Middle East has been cut off.
The remaining liquefied natural gas (LNG) has been re-prioritised to meet 100% of demand for LPG, CNG and pipeline cooking gas (PNG) production, 80% of commercial fuel users and 70% of fertilizer unit needs.
(With input from agencies)
