Rahul Gandhi warns West Asia war may hit India’s energy security; Govt rejects claim

Leader of the Opposition in the Lok Sabha Rahul Gandhi on Thursday (March 12) said that the ongoing disruption in energy supply through the Strait of Hormuz due to the war between Iran and the US, Israel will have “tremendous repercussions” for India as large sections of the country’s energy imports come through the Strait of Hormuz which has been closed by Tehran.

Addressing the Lower House, Rahul also said that there was widespread panic about LPG. The government, however, rejected his claims with Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, stating that India’s crude supply position has been secured.

Rahul warns of global oil shock

"A war has broken out in the Middle East. The United States, Israel and Iran are at war. This war is going to have far-reaching consequences. The central artery from where 20 % of the global oil flows, the Strait of Hormuz, has been closed,” said Rahul.

“This is going to have tremendous repercussions, particularly for us, because a very large portion of our oil and natural gas comes through the Strait of Hormuz. The pain has just started. Restaurants are closing. There's widespread panic about LPG...This is only the beginning,” he added as quoted by ANI.

Alleges loss of energy autonomy

Elaborating further, Rahul accused the government of allowing the US to decide where India buys oil from and the President of another nation to give it permission to buy Russian oil.

"The foundation of every single nation is its energy security. Allowing the United States to decide who we buy oil from, who we buy gas from, and whether we can buy oil from Russia or not...Our relationship with different oil suppliers can be decided by us. This is what has been bartered...Why a nation the size of India allow any other nation, the President of another nation to give us permission to buy Russian oil, to decide who our relationships are with...,” said Rahul.

Govt says crude supplies are secure

Refuting Rahul’s claims, Union Minister for Petroleum and Natural Gas said that India has secured crude supply exceeding what used to come through the Strait of Hormuz route following the Prime Minister's diplomatic outreach.

"...The world has not faced a moment like this in modern energy history...India's crude supply position is secure, and the volume secured exceeds what the Hormuz would have delivered. Before the crisis, approximately 45% of India's crude imports transited through the Strait of Hormuz route,” said Puri.

“Thanks to the Prime Minister's outstanding diplomatic outreach and goodwill, India has secured crude volumes that exceed what the disrupted Strait of Hormuz could have delivered in the same period,” he added.

‘Non-Hormuz imports rise to 70 per cent’

Puri further stated that India’s crude imports originating from non- Hormuz sourcing has gone up to approximately 70 per cent from 55 % before the conflict started.

"Non Hormuz sourcing has risen to approximately 70 % of crude imports, up from 55 % before the conflict began. India's sources grew from 40 countries as against 27 in 2006 and 2007. This structural diversification built through sustained policy over successive years has given us options that other nations find themselves without,” said Puri.

“The refineries are operating at high capacity utilisation. In several cases, they are exceeding 100%. There is no shortage of petrol, diesel, kerosene, ATF or fuel oil. The availability of petrol, diesel, aviation, turbine fuel, kerosene and fuel oil is fully assured. Retail outlets across the country are stocked and supply chains for these products are functioning normally...,” he added.

Govt assures gas supply and power security

The Union Minister further stated that the country has India has sufficient gas production and supply arrangements to sustain this position even in the event of a prolonged conflict.

“Power generation for every household and for industry is fully protected...Procurement has now been actively diversified with cargoes being secured from the United States, Norway, Canada, Algeria and Russia,” he added.