India Focuses on Fuel Availability Amid Iran-Israel Tensions, LPG a Concern

"Let us leave aside the pricing part right now, because that should not be the main concern. The main concern should be the availability in the current situation. But the supply should be the main concern," Surana said, as he outlined the evolving energy scenario linked to disruptions around the Strait of Hormuz.

He further said, "it is not that it is a business as usual. There are issues more so on the LPG side compared to other fuels, but Government is managing and we need to cooperate with them rather than trying to hold."

Explaining the global context, he said, "Around 20 per cent of that, around 20 million barrels passes through Strait of Hormuz," adding that despite assurances, "because the insurance coverage is not available, practically it is blocked."

However, he noted that some movement has resumed due to diplomatic efforts. "It is only through some diplomacy that some of the Indian vessels have arrived in last three, four days, like two vessels of LPG and two vessels of crude," he said.

Detailing India's dependence on imports, Surana said, "We are consuming around 268 million metric ton of crude per year. Out of that we produce only 10 percent, 90 percent comes," but highlighted diversification, stating, "now the dependency on Strait of Hormuz is only to the extent of 30 percent."

On current preparedness, he said, "I think the crude oil wise India has tied up reasonably for at least one to one and a half month," indicating short-term supply comfort.

He emphasised that petrol and diesel availability remains unaffected. "As far as petrol and diesel is concerned... there is no problem... that's why you don't see the queues at the petrol pumps," he said.

Shifting to LPG, Surana flagged it as the key area of concern. "Almost we can say 90 percent of that 60 percent was coming through the Strait of Hormuz. That's why you see a problem on LPG," he said, adding, "LPG storage is also limited and the consumption is also there."

He said the government has taken steps to prioritise household consumption. "The government has re-prioritized the domestic cooking gas compared to the industrial gases... because of which our domestic availability for household has increased by 25 to 30 percent," he said.

Surana also pointed to panic buying worsening the situation. "All of a sudden rush to book the second cylinder... that should not be done," he said, noting, "normal average booking is 55 lakhs... in last three four days the booking had gone to 75-80 lakhs."

On the trajectory of the conflict, he said markets are not expecting a prolonged war. "The very fact that the crude price is hovering between 100 and 105 dollars... means that the market is also factoring in this war cannot continue for very very long time," he said.

He stressed that restoring flows through the Strait remains critical. "We should be looking on how the Strait of Hormuz thing get stabilized and how much we can get from other sources," he said.

- ANI