Tension has once again increased between America and Iran. In such a situation, the biggest question is that if the Strait of Hormuz is closed, will there be a shortage of petrol, diesel and cooking gas in India? Is India still dependent on this sea route or has it made any preparations in advance? After all, why did India make a strategy to buy oil from 41 countries, how will the long LPG deal with America help and how is the UAE-Saudi Arabia alternative pipeline strengthening the country’s energy security? We are going to give you answers to all these questions here in simple language. We will also understand how many days of oil backup India has and how much impact it can have on the common people in case of a major crisis. Let’s understand with 7 questions.
1. What is the Strait of Hormuz and why is it so important for the world?
The Strait of Hormuz is one of the world’s most important maritime oil routes. It connects the Persian Gulf to the Gulf of Oman and the Arabian Sea. To the north of the Strait of Hormuz lies Iran, while to its south lie the Musandam Peninsula of Oman and the United Arab Emirates (UAE). Crude oil originating from the big oil producing countries of the Gulf reaches different countries of the world through this route. India has also been sourcing a major part of its needs through this route for a long time. If this route is closed due to war or any other reason then the supply of oil across the world is affected. This also affects the prices of petrol, diesel and LPG.
2. Is India still as dependent on Hormuz as before?
The simple answer is- no. India had already changed its energy strategy amid rising tensions once again in West Asia. According to the Petroleum Ministry, now about 70 percent of India’s crude oil is being imported through alternative routes outside Hormuz, whereas earlier this share was about 55 percent. The government says that with this change, India’s energy security has become much stronger than before and the dependence on any one sea route has reduced. In the latest information from PIB, the government has also said that the supply of crude oil, petrol and diesel in the country remains normal.
3. Why did India make a strategy to buy oil from 41 countries?
Earlier India used to buy oil mainly from some Gulf countries, but now the picture has changed. According to Union Petroleum Minister Hardeep Singh Puri, India has increased the number of its supplier countries from 27 to 41. Now apart from Iraq, Russia, Saudi Arabia and UAE, oil is also being purchased from countries like Brazil, Angola, Nigeria, Argentina, Algeria, Kazakhstan, Malaysia and America. Buying oil from more countries means that if there is war or crisis in one area, supplies from other countries can continue.
4. How is oil reaching India without Hormuz?
According to the report of PIB, Ministry of Petroleum and Natural Gas, India has not only increased new suppliers but has also created new routes. Saudi Arabia’s East-West Pipeline is delivering crude oil directly to Yanbu port. At the same time, the Abu Dhabi Crude Oil Pipeline of the United Arab Emirates takes the oil directly to Fujairah port, which is outside the Strait of Hormuz. This has significantly reduced the need for Indian ships to pass through sensitive sea routes and the oil supply has become secure.
5. If Hormuz is closed, will there be a shortage of LPG?
According to the reports of Indian Oil, BPCL, HPCL, and Petroleum Ministry, the government has made preparations for this also. Earlier, India used to import a major part of its LPG requirement from Gulf countries. Now India has also increased LPG purchases from countries like America, Norway, Canada, Algeria and Russia. Also, refineries have been instructed to increase domestic LPG production, so that the supply of gas cylinders to homes is not affected.
6. How many days of oil backup does India have?
According to the government, India currently has a total oil storage capacity of about 74 days. Apart from this, strategic petroleum reserves are also present. The government says that even if imports are affected for some time, arrangements have been made to maintain the supply of petrol, diesel and LPG in the country. Refineries are also working at higher capacity than normal.
7. What should the common man understand from this?
There is no need to panic at the moment. The government says that India has increased oil sources, created new sea and pipeline routes, signed agreements with many new countries including America for LPG and has also kept adequate backup. This means that even if tensions increase further in West Asia or the Strait of Hormuz is affected, the possibility of immediate stoppage of fuel supply in the country is much less than before.
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