India looking beyond Gulf countries for fuel demands

New Delhi: To meet the domestic fuel demand amid the escalating West Asia crisis, the Centre is exploring alternative countries like Australia, Canada and others to import additional natural gas.

Citing the ongoing US-Israel conflict with Iran leading to the closure of the key shipping route through the Strait of Hormuz, sources said the passage is not the only route for India's crude imports, adding that the days of dependence on a single maritime choke point are long over.

Supplies from Russia, West Africa, the Americas, Central Asia, and non-Gulf West Asian routes allow for flexible adjustments if any single corridor is disrupted. This diversification ensures that impacts from any one route can be managed effectively, said an official in the Ministry of Petroleum and Natural Gas.

"Apart from Gulf countries, we source crude from wherever it is available, competitively priced, and deliverable, and we will continue to do so," a senior government official stated.

India is in touch with major global crude oil and gas suppliers as well as international energy institutions such as the International Energy Agency (IEA) and the Organisation of the Petroleum Exporting Countries (OPEC), sources said.

Only around 40% of India's crude imports pass through the Strait of Hormuz, while about 60% are routed through other supply routes that remain unaffected, they said.

India has also recently entered into new energy supply arrangements with partners such as the United States and the United Arab Emirates to ensure stable long-term supplies.

Over the last decade, India's strategic oil diplomacy has expanded its supplier base from 27 to 40 countries across six continents. The days when India's energy security rose and fell with conditions in a single maritime choke point are over, sources said.

Fuel prices have skyrocketed in many countries ever since the West Asian conflict started. Petrol prices rose by about 55% in Pakistan, 22% in Germany, 19% in France, and 11.54% in the US during the same period, said the official, adding that India's petrol prices increased by less than 1%.