The Ministry of Petroleum and Natural Gas is in talks with both Iran and the US to obtain security assurances, while the Indian Navy has been placed on standby to escort urgent LPG shipments, according to a report
As the war between the US, Israel, and Iran enters its eleventh day, India is exploring options to secure urgent fuel shipments amid rising global oil prices, following supply cuts by major producers.
According to a News18 report, citing top government sources, the Ministry of Petroleum and Natural Gas is in talks with both Iran and the United States to obtain security assurances, while the Indian Navy has been placed on standby to escort urgent LPG shipments.
The Strait of Hormuz, which handles about one-fifth of the world’s oil and liquefied natural gas, has been effectively shut down following US-Israeli strikes on February 28 and Iran’s retaliatory attacks on Gulf countries.
Officials warn that a prolonged conflict could leave businesses and consumers facing weeks or months of higher fuel costs, while suppliers contend with damaged facilities and disrupted logistics, reported News18.
Earlier, sources said India had crude oil reserves sufficient for 25 days and is actively exploring alternative sources for crude oil, LPG, and LNG to safeguard energy security.
Union Minister Hardeep Singh Puri emphasised that India has adequate energy reserves to manage the ongoing situation.
The government is prioritising urgent LNG imports from the Gulf region and has asked the Navy to be ready to escort these shipments.
Security assurances from both Iran and the US are being sought before vessels transit the Strait of Hormuz.
Iranian authorities have previously stated that ships from Asian countries will not be targeted in the Strait.
Once assurances are received, Indian Navy escorts are expected to facilitate the transit of fuel shipments through the Strait, a journey that should take less than a day, reported News18.
LPG booking period extended, refineries asked to boost production: Sources
To prevent hoarding and black marketing, the booking period for LPG cylinders has been increased from 21 to 25 days, ANI quoted government sources as saying
“There were instances that people who were earlier booking LPG cylinders in 55 days have started booking cylinders in 15 days,” they added on Monday.
The government has also instructed refineries to increase LPG output and prioritise domestic consumers over commercial connections.
“Domestic consumers will always be a priority,” the sources reaffirmed.
India is exploring additional LPG suppliers, with countries including Algeria, Australia, Canada, and Norway approaching to sell LPG.
On fuel prices, government sources said petrol and diesel are unlikely to rise unless crude oil breaches $130 per barrel.
“We expect crude oil prices to be around $100 per barrel,” one source said. “No problem of shortage of petrol and diesel at any pump in country.”
The sources also noted that India has enough Aviation Turbine Fuel (ATF).
“India is a producer and exporter of ATF, no need to panic about ATF,” they said, adding that sourcing crude through alternative routes beyond the Strait of Hormuz has been accelerated.
India, they said, is better placed than many other countries to manage fuel supplies.
With inputs from agencies
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