Full Breakdown
India Navigates West Asia Energy Turbulence While Expanding Domestic Supply
By Drooid · · How we work
Background & Context
The ongoing conflict in West Asia, including the blockade of the Strait of Hormuz, has disrupted global crude-oil and natural-gas flows. India, which imports the bulk of its energy, faces heightened logistical risks as 40 % of its energy movement relies on volatile transit routes. Minister of Petroleum and Natural Gas Hardeep Singh Puri framed the situation as “turbulence, not uncertainty,” emphasizing the need to shield 1.4 billion people from price volatility.
Key Data & Statistics
- Global crude-oil availability stands at roughly 104 million barrels per day against a consumption of about 94 million barrels per day.
- India’s crude-sourcing network has expanded to 41 countries from 27 previously, reducing exposure to any single region.
- The country’s LPG connections rose from 14 crore in 2014 to 33.5 crore (reported as 33 crore 50 lakhs in 2026).
- Daily domestic LPG production increased from 34,000 metric tonnes to 54,000 metric tonnes.
- Public-sector oil marketing companies incur under-recoveries of roughly Rs 530 crore per day, for which the government provides financial support.
- Fuel excise duties were cut three times—most recently on March 10, 2026, lowering petrol and diesel prices by Rs 10 per litre.
Official Statements & Responses
He highlighted logistics and distribution as the principal challenges, noting the risk of rerouting shipments through the Red Sea amid Houthi attacks.
Regarding future energy security, Puri announced the GOBARdhan Scheme—a circular-bioenergy program backed by Rs 23,731 crore—to be unveiled on October 1. The scheme aims to convert cattle dung, crop residue, and municipal organic waste into compressed biogas and organic manure.
Verbatim Quotes
- “So far we have navigated that uncertainty. In fact, I would say we have insulated ourselves from the turbulence,” — Iran. Puri, the minister
- “Every challenge, every crisis, poses a challenge. Every challenge has in it an opportunity, and that opportunity we will utilise.” — Iran. Puri, the minister
- “I would say we have insulated ourselves from the turbulence, but going forward also constitutes a challenge,” — Iran. Puri, the minister
Upcoming Initiatives
The event is positioned to showcase developments across oil and gas, LNG, refining, petrochemicals, hydrogen, biofuels, digitalisation, and AI, and to foster partnerships for global energy security, especially for countries of the Global South.
What’s Next
- October 1: Launch of the GOBARdhan circular-bioenergy initiative.
- January 28-31, 2027: India Energy Week 2027 in Kolkata, expected to attract over 75,000 energy professionals and 700+ international exhibitors.
Through diversified sourcing, increased domestic LPG output, and strategic policy measures, India aims to maintain energy availability and affordability despite ongoing geopolitical disruptions.