People across world would have been surprised the way India efficiently handled Hormuz disruption: Former ONGC Director
New Delhi, June 29
India's ability for coordinated response during an impending crisis will help keep domestic energy supply stable even amid high import dependence, Sushma Rawat, former Director, Exploration, ONGC, has said, adding that the country's handling of the Strait of Hormuz disruption offers a template for any future shock.
"India would almost come at nine out of 10 if you rate global government performance during the crisis," Sushma Rawat told ANI in a conversation on India's energy supply management.
"It's really credible the way the Government of India and the Ministry of Oil and Natural Gas has handled this," she added, pointing to the country's multilayered demand, vast population and logistically challenging geography.
Despite 85 per cent crude import dependence and 80-90 per cent of LNG coming through the Strait of Hormuz, mainly from Qatar, India saw only "two to three percent" initial price impact versus "40 percent" increases in the US and Europe, Rawat said. "That buffer which the Indian government took in terms of financial loss and under recoveries... saved the common man from difficulties." PSUs "absorbed the losses," she noted, adding that supply disruptions were "almost negligible" and black marketing was "nipped in the bud."
On LPG, Rawat referred to rapid rebalancing. "A 30 per cent reduction for industrial use... channeling it towards domestic supply," plus pricing and a fast-track shift to PNG in metros.
She said new pipelines have been laid and steps have been taken against double connectivity freeing cylinders for logistically difficult areas.
Rawat said that more than 50 per cent of the outcome was due to diplomacy, because "if you are good at geopolitics you can ensure your source from anywhere."
India, she said, did not take sides and stressed that "the world has to be ensured supply of energy because that is a requirement for everyone."
The approach -- leveraging ties with Russia, the Gulf countries, and others -- and efforts by the government ensured vessels intermittently continued passing through Hormuz, she said.
Rawat said India is diversifying sources, accelerating domestic gas use, and expanding PNG to reduce exposure.
"A lot of people across the world would have been very surprised... the way India handled its energy disruption," she said, adding that "decades of friendship building" underpin today's resilience.
— ANI
Reader Comments
As someone from the US, I have to admit this is impressive. Our gas prices shot through the roof during similar disruptions, while India managed to keep things stable despite being 85% import dependent. The diplomatic approach of not taking sides while ensuring energy flow is smart realpolitik. We could learn from this.
While the overall management was good, let's not ignore that many of us in tier-2 cities still faced some logistical delays with LPG cylinders. The shift to PNG is great for metros, but rural areas need better infrastructure. Still, compared to what could have happened, the government did well. Hope we continue diversifying energy sources!
I'm a energy analyst based in London, and I concur with Ms. Rawat's assessment. India's handling was a masterclass in crisis management - diplomatic outreach, strategic stockpiling, and domestic rationing all coordinated seamlessly. The 2-3% price impact vs 40% in Western markets speaks volumes. Other nations should take notes.
What strikes me is the comment about 'decades of friendship building' - that's the India way. We don't just react to crises, we build relationships over time. Our ties with Russia, Gulf nations, and others paid off. But we need to accelerate renewable energy too, not just manage fossil fuel disruptions. Long-term thinking is key! 🔋
Reading this from Texas, I'm genuinely impressed. India's energy diplomacy during Hormuz disruption was textbook - leveraging multiple relationships, not picking sides, and prioritizing domestic stability. The PSU buffer system is something the
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