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India Expands Crude Sourcing to 41 Nations, Shields Consumers from Energy Crisis

India expanded its crude oil sourcing base from 27 to 41 countries to strengthen energy security during the global crisis. Union Minister Hardeep Singh Puri said the government absorbed price shocks at the fiscal level rather than passing them to consumers. Domestic LPG production increased by 60% from 36,000 MT to 54,000 MT per day. Operation Urja Suraksha coordinated responses across companies, ministries, and international suppliers to ensure supply stability.

Key Points: India Expands Crude Sourcing to 41 Countries, Protects Consumers

  • Crude sourcing expanded from 27 to 41 countries
  • Domestic LPG production increased by 60%
  • Government absorbed price shocks instead of passing to consumers
  • Excise duty cut and export levies implemented to stabilize fuel prices
2 min read

India expanded crude sourcing to 41 countries, shielded consumers during energy crisis: Hardeep Singh Puri

Hardeep Singh Puri says India expanded crude sourcing to 41 countries, boosted LPG production by 60%, and shielded consumers during global energy crisis.

"What has happened during this energy crisis in India, it happened because the Govt absorbed the shock at the fiscal system level rather than passing it immediately on to the consumer's wallet. - Hardeep Singh Puri"

Surat, May 2

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri on Friday said India expanded its crude oil sourcing base to 41 countries from 27 earlier, as part of efforts to strengthen energy security during the global energy crisis.

"What has happened during this energy crisis in India, it happened because the Govt absorbed the shock at the fiscal system level rather than passing it immediately on to the consumer's wallet," Puri said while speaking at the Vibrant Gujarat Regional Conference - South Gujarat.

He added that long-term planning played a key role in managing the crisis. "Because preparations made over the last 10 years, the decade, came into play exactly when they were needed. We diversified our sources; crude sourcing has now expanded from 27 countries to 41," he said.

Highlighting supply diversification, the minister noted, "We started procuring LPG from the US, Norway, Algeria, apart from the Middle East."

On boosting domestic production, Puri said, "Orders were issued to maximise LPG yield at refineries, and we increased our domestic production by 60%. From 36,000 MT per day to 54,000 MT per day."

He added that consumption patterns were also evolving. "Out of a total daily consumption of 90,000, which we also brought down because we are shifting from LPG to LNG, that is pipe gas, and also because we are incentivising the movement to natural gas," he said.

Referring to crisis management measures, the minister said, "Operation Urja Suraksha was a coordinated response across companies, ministries, state govts and international suppliers," adding that "maximum vessels of India carrying LPG came out of the Hormuz."

Puri also highlighted steps taken to shield consumers from rising global prices. "When crude prices moved up sharply, our oil marketing companies carried under recoveries that would normally have translated into a direct retail increase. Excise duty was cut, export levies were used to keep Indian products in Indian markets," he said.

Citing current fuel prices, he added, "The consequences is visible. As of late April, petrol in Delhi remains at Rs 94.77 per litre and diesel at Rs 87.67 per litre."

He also underlined that "we kept the kitchen fire in 33 crore kitchens burning through thoughtful allocation," adding that "today, commercial LPG is at about 70% of pre-crisis levels, with priority to labour-intensive sectors like steel, automobiles, textiles, dyeing, chemicals and plastics."

- ANI

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Reader Comments

R
Rahul R
The minister's point about absorbing the shock at fiscal level is important. Governments often pass on costs to consumers immediately. But I'm still paying Rs 94.77 for petrol in Delhi - is that really "shielding"? Middle class families feel the pinch. Need more transparency on how much subsidy was actually given and who really benefited.
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Priya S
Interesting to see LPG procurement from US and Norway! Never thought we'd be getting cooking gas from Norway. Also, the 60% increase in domestic LPG production from 36,000 to 54,000 MT per day is impressive. My mother in Kerala says she got her cylinder refill on time even during the worst of the crisis. That's what matters at the end of the day. 🏠
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Ravi K
One thing I appreciate is the shift from LPG to piped natural gas. That pipe gas connection in my Pune flat costs way less than LPG refills. But the infrastructure rollout is slow in smaller towns. Hope they accelerate that. Also, "Operation Urja Suraksha" sounds like proper crisis management. But why did it take a crisis to start thinking about diversification? Should have done this earlier.
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James A
Living in Mumbai, I pay Rs 106.22 per litre for petrol due to state taxes. The central govt's excise cut helped but state governments need to reduce VAT too. Diversifying sources is good geopolitically but fuel prices remain high for common citizens. The 33 crore kitchen fires point is powerful - that's real impact. But let's not ignore the pain at the pump for millions of commuters.
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Siddharth J

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