Govt's handling of energy crisis amid West Asia war was extraordinary: Amitabh Kant
New Delhi, June 29
The Indian government's "extraordinary" handling of the global energy crisis in the wake of the West Asia conflict ensured that consumers were protected from the rise in prices and there was no black marketing in fuels as households continued to get LPG, India's former G20 Sherpa Amitabh Kant said.
"I would really appreciate several measures taken by India during this period. This crisis is not of our making. It's a global crisis. Across all countries of the world, the customers were impacted. In India, no customer has been impacted. That, to my mind, is great work. I think the key measure was that the government cut excise duty on petrol and diesel. It also ensured that it widened its base of supplies," Amitabh Kant told IANS in an exclusive interview.
He further stated that it was like addressing the crisis with great vision and great fortitude. During this period of crisis, much like the Covid period, all ministries worked together. As many as 12 Indian vessels could come and bring crude back to India through the Strait of Hormuz, which was great diplomacy, he added.
The former NITI Aayog CEO said that India's example has been an extraordinary handling of the energy crisis by a country which imports almost 86 per cent of its crude oil and about 60 per cent of its LPG. There was a major excise cut of Rs 10 on petrol and on diesel to nil, which helped to keep prices in check despite the global spike.
The government also ensured that the Ujjwala customer gets an LPG cylinder for Rs 642, while the cost of production is Rs 1,600. That means a subsidy of almost Rs 900. But more important than that, by issuing the LPG control order, the production of LPG went up enormously in India's refineries, Amitabh Kant pointed out.
He further stated that new countries were tapped for crude imports, with 27 new suppliers introduced. So, the base greatly widened. The LPG control order ensured that refineries which had never produced LPG switched over to LPG. This was a great, show of demonstration that India's refineries could rise to the occasion, he said.
"We enhanced our production in our refineries, and we ensured that pipeline connections were made," he remarked.
Asked whether it was time to reduce petrol and diesel prices, Amitabh Kant said: "I think that things are stabilising. It's too early to say... The geopolitical tensions are still there. Hopefully, the prices will come down, and India will benefit from this."
So will the Global South and many other emerging markets, and the government will take the decision for the benefit of the consumers and the citizens of India in due course, he added.
— IANS
Reader Comments
Interesting perspective from Amitabh Kant. Managing 86% crude imports during a war in West Asia is no joke. But I wonder if the subsidies are sustainable long-term, especially with the fiscal deficit. Still, better than letting prices skyrocket.
The LPG control order was a masterstroke. Making refineries switch production—very smart! And sourcing from 27 new suppliers shows we're not dependent on one region. This is the kind of crisis management we need to see more of. 🇮🇳
Happy for the Ujjwala scheme but what about middle-class families? We still paid high prices for petrol and diesel despite the excise cut. Yes, it could've been worse, but let's not pretend it was painless. Need more transparency on pricing.
Very impressive diplomacy getting 12 Indian vessels through the Strait of Hormuz. That takes serious negotiation skills. The comparison with Covid coordination between ministries is apt. Would love to see a detailed case study on this.
Amitabh Kant ji is right about the crisis not being our making. West Asia tensions are beyond our control. The way India managed supply chains and kept black marketing at bay deserves applause. Now hopefully global prices stabilize soon. 🤞
R Ravi K