Fuel Prices Hike On Cards Amid Middle East War? Sources Say Enough Stock, India Has No Plans For Rationing Of Petrol And Diesel

Government sources have said that India currently has no plans to ration petrol or diesel, as the country has enough stock to meet its needs. Officials said that Gas Authority of India Limited (GAIL) may declare force majeure to make sure gas supply continues for priority sectors as India deals with possible energy disruptions linked to the rising conflict in West Asia.

GAIL May Declare Force Majeure On Gas Supply

According to government sources on Thursday, the move comes after Qatar Energy declared force majeure on Wednesday. Force majeure is a contractual clause that is used when unexpected events make it impossible for a party to meet its contractual obligations. It protects the party from penalties and claims of contract violations.

Qatar plays a major role in global energy supply. The country provides about 20 per cent of the world’s LNG requirements and is also a key energy partner for India. Qatar currently supplies 60 million metric standard cubic metres per day (mmscmd) out of India’s total 195 mmscmd gas imports.

Australia, Canada Offer Gas To India

Earlier in the day, government sources also said that Australia and Canada have offered to sell gas to India as the country looks for alternative sources amid the escalating West Asia conflict. India is actively exploring other markets for gas supplies. At present, the country imports 195 mmscmd of gas, with Qatar providing 60 mmscmd.

Officials said India is also holding discussions with major oil producers and traders to buy crude oil and liquefied petroleum gas (LPG). According to sources, the government is in talks with the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC). India is also discussing with the United States the possibility of getting insurance support for ships transporting energy supplies.

To strengthen its energy security, India has recently signed new agreements with the UAE and the United States to diversify its energy sources.

Government Reviewing Energy Situation Twice Daily

Government sources said the energy situation is being reviewed twice every day, and India remains in a very comfortable position when it comes to energy security. Current stocks are also considered sufficient and are being replenished regularly.

Officials also noted that there is no shortage of LPG, LNG or crude oil in the global market, and India remains in contact with multiple suppliers to maintain steady supply.

India Has Nearly Eight Weeks Of Oil And Fuel Stock

Earlier this week, government sources said that India currently holds about eight weeks of crude oil and petroleum product inventory, including its strategic reserves. Only around 40 per cent of India’s crude oil imports pass through the Strait of Hormuz, which reduces the country’s exposure to disruptions in the region.

Sources said the country remains in a comfortable position on energy security despite the evolving situation in West Asia. India is closely monitoring developments but is prepared to deal with any possible supply disruptions because of its stock levels and diversified sourcing.

According to officials, India currently has around 25 days of crude oil inventory, along with about 25 days of petrol and diesel stock.

Overall, India’s combined stock of crude oil and petroleum products provides nearly eight weeks of inventory cover, which helps ensure energy security during short-term disruptions.

Only 40% Of India’s Crude Imports Pass Through Strait Of Hormuz

Only 40 per cent of India’s crude imports move through the Strait of Hormuz, while the remaining 60 per cent comes from other routes and suppliers. India also continues to import Russian crude oil under existing contracts.

Government sources added that the country remains in a comfortable position regarding LPG and LNG supplies and said the government is keeping a close watch on global energy markets to ensure uninterrupted supplies for the country.

(With inputs from ANI)

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