Tension between America and Iran has increased once again. 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 heavily dependent on this sea route, or has it already made preparations? Why did India make a strategy to buy oil from 41 different countries? How will the long-term LPG deal with the US help, and how are alternative pipelines from the UAE and Saudi Arabia strengthening the country’s energy security? Here we will answer all these questions in simple language. We will also see how many days of oil reserve India has and what effect a major crisis can have on the general public. Let us understand this through seven main questions.
1. What is the Strait of Hormuz, and why is it so important to 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 this strait is Iran, while to the south are the Musandan Peninsula of Oman and the United Arab Emirates (UAE). Crude oil produced in the major Gulf countries reaches various countries around the world through this route. India has also been meeting a large part of its needs through this route for a long time. If this route is closed due to war or any other reason, the global oil supply will be disrupted, which will affect the prices of petrol, diesel and cooking gas.
2. Is India still as dependent on the Strait of Hormuz as it was before?
The short answer is – no. Amid rising tensions in West Asia, India has changed its energy strategy. According to the Petroleum Ministry, about 70 percent of India’s crude oil now comes through alternative routes that do not pass through the Strait of Hormuz; Earlier this figure was around 55 percent. The government says that this change has significantly strengthened India’s energy security compared to the past and has reduced dependence on any one sea route. Recently the Press Information Bureau (PIB) has confirmed that the supply of crude oil, petrol and diesel remains normal across the country.
3. Why did India adopt the strategy of buying oil from 41 countries?
Earlier, India mainly bought oil from some Gulf countries, but now the situation has changed. According to Union Petroleum Minister Hardeep Singh Puri, India has increased the number of oil supplying countries from 27 to 41. Apart from Iraq, Russia, Saudi Arabia and UAE, now oil is also being imported from countries like Brazil, Angola, Nigeria, Argentina, Algeria, Kazakhstan, Malaysia and USA. Getting oil from multiple countries ensures that even if there is a conflict or crisis in a particular region, supplies from other countries can continue.
4. How is oil reaching India without passing through Hormuz?
According to the report of the Ministry of Petroleum and Natural Gas and PIB, India has not only increased the number of its suppliers but has also created new avenues. Saudi Arabia’s East-West Pipeline delivers crude oil directly to Yanbu port. At the same time, UAE’s Abu Dhabi Crude Oil Pipeline delivers oil to Fujairah port located outside the Strait of Hormuz. This has significantly reduced the need for Indian ships to pass through this sensitive sea route, which will ensure secure oil supply.
5. Will there be a shortage of cooking gas (LPG) if the Strait of Hormuz is closed?
Reports from Indian Oil, BPCL, HPCL and Petroleum Ministry show that the government has also made preparations for this situation. Earlier, India used to meet a major part of its LPG requirements from Gulf countries. However, now India has increased the import of LPG from countries like USA, Norway, Canada, Algeria and Russia. Apart from this, refineries have been directed to increase domestic LPG production so that the supply of gas cylinders to homes continues without interruption.
6. How many days of oil reserves does India have?
According to the government, India currently has enough total oil storage capacity for about 74 days. In addition, strategic petroleum reserves are also available. The government says that even if there is a blockage in imports 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 this time. The government claims that India has diversified its oil sources, created new sea and pipeline routes, signed agreements with many new countries including the US for LPG supply and ensured adequate reserves. This means that even if tensions in West Asia increase further or the Strait of Hormuz is affected, the possibility of an immediate stoppage of fuel supplies to the country is much less than before.
