Middle East Tensions: Prime Minister Narendra Modi will reportedly chair a high-level meeting this evening to review the energy situation amid escalating tensions in the Middle East.
He will be holding the meeting with senior ministers to take stock of petroleum, power, and fertiliser sectors in view of the evolving West Asia situation, PTI reported, citing sources.
Focus of the meeting
The focus of the meeting is to ensure uninterrupted supply, stable logistics and efficient distribution across the country, and the government is taking proactive steps to this end, the report added.
Continuous monitoring of global developments to protect consumer and industry interests is the key focus of the government, the sources were quoted as saying.
West Asia war triggered energy crisis: PM Modi
On March 12, PM Modi said that the war in West Asia has triggered a worldwide energy crisis, posing a critical test of national character that requires dealing with circumstances through peace, patience, and increased public awareness.
The prime minister emphasised that his government is working relentlessly to address disruptions that have emerged in international supply chains.
“Continuous efforts are also underway to determine how we can overcome the disruptions that have occurred in the supply chain,” Modi said.
The prime minister has spoken to many global leaders since the West Asia conflict started on February 28, with the US and Israel attacking Iran.
Iran has retaliated by attacking Israel and several of its Gulf neighbours.
Iran controls the Strait of Hormuz, a key shipping route through which 20 per cent of the world’s energy is transported. Since the conflict, very few ships have been allowed by Iran to cross it.
The blockade has resulted in severe disruptions in energy supply to many countries, including India.
Since the conflict, Modi has had telephonic conversations with leaders from Saudi Arabia, UAE, Qatar, Bahrain, Kuwait, Jordan, France, Malaysia, Israel and Iran.
First China-bound Russian oil tanker reaches India
Oil tanker, Aqua Titan, carrying Russian crude, reached Mangaluru Port today. It is the first of seven containing Russian crude to reach India.
The medium-sized oil ship was originally bound for China and was sailing in the South China Sea when it made a U-turn for India earlier this week.
This comes after the US issued a temporary general license on Thursday, allowing the sale of Russian crude oil already stranded at sea in an effort to stabilise global fuel prices amid West Asia conflict.
Earlier today, Pyxis Pioneer, a cargo ship carrying Liquefied Petroleum Gas (LPG) from Nederland, Texas, in the US, also arrived at the New Mangalore Port.
Hormuz closure choked energy supply
India imports around 60 percent of its LPG from overseas, and 90 per cent of those imports come through the Middle East, via the Strait of Hormuz. When tankers stopped moving through that route, supplies to India took a direct hit. However, India’s diplomatic efforts with Iran ensured positive results as Tehran allowed India-flagged vessels to sail through the Hormuz, easing some pressure on the supply of crude oil and gas to the country.
Two LPG carriers had reached
Earlier, an Indian-flagged LPG tanker ‘Nanda Devi’ arrived at Vadinar Port in Gujarat, becoming the second LPG carrier to reach the west coast this week after ‘Shivalik’ docked at Mundra Port. Both vessels transported critical LPG supplies to India following an unusually hazardous passage through the Strait of Hormuz, where maritime traffic has been disrupted by the ongoing conflict involving Iran, the US and Israel.
Current LPG prices across major cities
LPG cylinder prices vary across major Indian cities depending on local VAT rates and freight charges. Currently, a 14.2 kg domestic cylinder costs Rs 913 in Delhi, Rs 912.50 in Mumbai, Rs 915.50 in Bengaluru, Rs 928.50 in Chennai, Rs 939 in Kolkata, Rs 950.50 in Lucknow, Rs 965 in Hyderabad, and Rs 1,002.50 in Patna. For 19 kg commercial cylinders, prices stand at Rs 1,836 in Mumbai, Rs 1,884.50 in Delhi, Rs 1,958 in Bengaluru, Rs 1,988.50 in Kolkata, Rs 2,007 in Lucknow, Rs 2,043.50 in Chennai, Rs 2,105.50 in Hyderabad, and Rs 2,133.50 in Patna.
The price differences between cities come down to local VAT rates and how far the gas has to travel to get there.
The Bigger Picture
India’s dependence on Middle Eastern energy has always been a vulnerability. This crisis has simply made it more visible. Nearly 88 per cent of crude oil, 50 per cent of natural gas, and 60 per cent of LPG that India uses comes from imports.
(With inputs from PTI, AIR and Times Now)
