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Global Oil Crisis Worsening, India Shielded by Proactive Measures: Hardeep Puri
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Moneycontrol•24-09-2026, 19:33
Global Oil Crisis Worsening, India Shielded by Proactive Measures: Hardeep Puri
- •Union Minister Hardeep Singh Puri stated the global oil crisis is far from over and could intensify, but India has largely mitigated its impact.
- •Puri highlighted that the current challenge is not a crude oil shortage but disruptions in supply routes, with global availability at 102 million bpd against India's demand of 94-95 million bpd.
- •India's resilience stems from foresight, including expanding refining capacity to an anticipated 290 million tonnes per annum and diversifying crude sourcing from 27 to 41 countries.
- •The government also absorbed revenue hits by cutting excise duty on petrol and diesel and significantly increased domestic LPG production to manage supplies.
- •Puri noted the success of biofuel, saving India ’1.90 lakh crore, and mentioned India's $10 billion energy investments in Mozambique, Russia, Brazil, and Abu Dhabi.
Key Questions Answered
India successfully shielded consumers by expanding domestic refining capacity, diversifying crude sourcing from 27 to 41 countries, increasing domestic LPG production, and taking a revenue hit by cutting excise duty on petrol and diesel.
Crude prices spiked due to renewed US-Iran conflict, the shutdown of Saudi Arabia's East-West pipeline, and heightened Houthi activities in the Red Sea, with Brent standing at $105 per barrel.
The current 20 percent ethanol blending level in petrol, known as E20, was introduced in April 2023 after rising from 1.4 percent in 2014, and there are currently no plans to increase it further.
