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Union minister Hardeep Singh Puri said it will be a cause for worry if the Strait of Hormuz is closed or choked as India imports 1.5 million barrels of crude oil via this route
Union minister Hardeep Singh Puri made India’s situation clear due to concerns over rising oil prices or even shortages. (Image: PTI/File)
Even if everything goes wrong, India has enough oil, said Union Minister Hardeep Singh Puri amid the escalating conflict between Iran and Israel.
Giving this reassurance, Puri said it will be a cause for worry only if the Strait of Hormuz – described as the “world’s most important oil transit chokepoint” between Oman and Iran – is closed.
“Even if everything goes wrong, we have enough oil. India imports around 5.5 million barrels of crude oil, of which around 1.5 million comes via the Strait of Hormuz route, where Iran is located at the north. The worry will be if the strait is closed or choked,” Puri told News18 in an exclusive interview.
“I would use the word anxiety, not worry. For 50 years, the strait has never been shut. There are many countries that would not want it to be shut. There have been many phases of heightened tensions in the region, but energy does not stop flowing,” he said.
He, however, made the situation clear due to concerns over rising oil prices or even shortages. “All I can say is that with the PM (Narendra Modi) at the helm, he is ahead of the game and we have diversified supplies. We have enough, more than enough supplies and we can get more and we also have domestic production,” he added.
Excerpts from the interview:
When costs increase, what impact could it have on our infrastructure? It’s an election year and we are sensitive to this. Are you worried that if the Israel-Iran faceoff stretches, it could be bad?
No matter what happens, if everything goes wrong, we will still have enough oil. What gives hope to the government is the fact that not only does India look at alternative crude oil sources like Qatar, South Africa, and Russia but we have begun to have domestic production. Not many understand the revolution we have done in the field of biofuels and ethanol. Our production here has been growing and I don’t see any trouble for India. We have a stock for three months at least. With this, the government is optimistic that infrastructural prices will not face a collateral impact because of the Israel-Iran faceoff.
Do we have a reason to be worried as far as crude oil prices are concerned because of the faceoff?
I would choose my words carefully. I would choose the word anxiety. Wherever there is tension, wherever the military situation is escalating or devastation is likely, our energy needs could be a cause for this anxiety. A fairly large portion of our energy needs, about 20 per cent, passes through the Strait of Hormuz. The strait has never been closed, but even if it does, it will be re-routed. Costs could go up; insurance costs have gone up but energy does not stop flowing. If the strait is still closed, we don’t worry. We consume 5.5 million barrels, about 1.5 comes through this strait. So if we do simple math, we can get more from wherever we are getting the rest of the 4 million.
Do we have enough stock?
Yes, we have enough for three weeks and can get more. We also have domestic supplies and production. We don’t need to go through the strait. We have pipelines. Also, if push comes to shove, we can stop the export of our petroleum products. The Prime Minister is at the helm, and he is ahead of the game.
India faced a lot of criticism when it was buying Russian oil during the peak of its conflict with Ukraine. What do you have to say about that?
It was a smart move. There is no such thing as a morality tag. We will buy oil from where it is cheapest and good for the country. The PM’s only obligation is to the people of the country. We ensure that oil prices don’t go up. No Congress-ruled state has reduced it. We have. Today, oil prices are not peaking and wise counsels will prevail; the situation will de-escalate. Anyone can issue a tender and there was no sanction against Russian oil or Russia.
Has the Prime Minister’s diplomatic overture helped to diversify?
Yes, his contribution to transforming India and its energy needs is amazing, we are moving ahead to becoming the third largest economy.
What about biofuels and ethanol?
We have saved Rs 1 lakh crore and we have saved on our imports bill. We are the second largest blending country in the world. We are using 1,100 crore litres and doing well here.
Pallavi Ghosh has covered politics and Parliament for 15 years, and has reported extensively on Congress, UPA-I and UPA-II, and has now included the Finance Ministry and Niti Aayog in her reportage. She has als…Read More
Pallavi Ghosh has covered politics and Parliament for 15 years, and has reported extensively on Congress, UPA-I and UPA-II, and has now included the Finance Ministry and Niti Aayog in her reportage. She has als… Read More
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