The government on Monday addressed concerns regarding India's energy supplies amid the escalating situation in the Strait of Hormuz and reiterated Prime Minister Narendra Modi's appeal to citizens to reduce their consumption of petrol and diesel.
At an inter-ministerial meeting, Sujata Sharma, joint secretary for the Ministry of Petroleum and Natural Gas, stated, "I would like to convey to you that the Prime Minister has urged all citizens of the country to reduce their consumption of petrol and diesel." She further urged, "Wherever possible, utilize the Metro and public transportation; opt for carpooling; prioritize railways as a mode of transportation for goods; and wherever feasible, increase the usage of electric vehicles. Let us all come together and make every possible effort to conserve energy in our daily lives, so that the economic burden currently weighing upon the nation may be alleviated."
Fuel Supply Assurance
Turning to energy supplies in the country, Sharma added, "The Government of India has taken several effective measures and has strived to ensure that fuel supplies are maintained for the common consumer with minimal inconvenience. As a result of all these steps taken, our crude oil inventory remains well-maintained." She mentioned, "Our refineries are operating at optimum levels. There are no instances of dry-outs at any retail outlets. Nor have any dry-outs been reported at LPG distributorships. Adequate stocks of petrol and diesel are available, and LPG supplies for domestic cooking purposes are being maintained. Over the past three days, 1 crore 26 lakh LPG cylinders have been delivered to households against 1 crore 14 lakh bookings. Similarly, sales of commercial LPG have exceeded 17,000 tonnes over the last three days. Sales of Auto LPG have also surpassed 762 tonnes."
Strait of Hormuz and Oil Prices
Opesh Kumar Sharma, director for the Ministry of Ports, Shipping and Waterways, addressed concerns related to taxes for passing through the Strait of Hormuz, clarifying that India paid no tax to do so. Oil prices have continued to soar ever since the Middle East conflict began, squeezing the crucial Strait of Hormuz. On Monday, Brent crude was up 2.69% to $104.01 a barrel, while West Texas Intermediate rose 2.54% to $97.84 a barrel. In India, retail prices of petrol and diesel remained unchanged at nearly two-year-old levels of Rs 94.77 per litre and Rs 87.67 per litre, respectively.
Losses for Oil Marketing Companies
Meanwhile, state-owned oil marketing companies (OMCs) have reported losses exceeding Rs 1 lakh crore over the last 10 weeks as they continued to cushion Indian consumers from rising global fuel prices driven by the ongoing Middle East conflict. The three public sector fuel retailers—Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited—are currently facing combined under-recoveries in the range of Rs 1,600 crore to Rs 1,700 crore per day, sources cited by news agency PTI said. The government further added that as of now, there are no relief packages for these companies.
