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Amid turmoil in West Asia, government sources on Tuesday said that India has a total of eight weeks of crude oil and petroleum products inventory, that includes strategic reserves, and only about 40 per cent of India's crude oil imports transit through the Strait of Hormuz, significantly limiting exposure to regional disruptions.
They asserted that the country remains in a comfortable position on energy security amid the evolving situation in the West Asian region. Sources said India is closely monitoring developments in the region but is well-prepared to manage any potential supply-side challenges due to adequate inventory levels and diversified sourcing. According to sources, India currently has around 25 days of crude oil inventory. Additionally, the country maintains about 25 days of petrol and diesel inventory. Overall, India has a total inventory cover of nearly eight weeks of crude oil and petroleum products, ensuring energy security in the event of short-term disruptions. Only 40 per cent of India's crude moves through the Strait of Hormuz, and 60 per cent of the rest of the crude comes from other sources India continues to import Russian crude as per previous contracts. The sources further stated that India is in a comfortable position with respect to LPG and LNG supplies. The government, according to sources, is keeping a close watch on the global energy market to ensure uninterrupted supplies for the country Earlier in the day, sources indicated that India is scouting for alternative sources for importing crude oil, LPG and LNG. The sources said that there are no immediate plans to raise the prices of petrol or diesel in the country amid tensions in West Asia. Union Petroleum and Natural Gas Minister Hardeep Puri, on Monday, reviewed the supply situation for crude oil, LPG, and other petroleum products with senior officials from the Ministry and PSUs, amid tensions in West Asia. The Petroleum Ministry has said it is continuously monitoring the evolving situation, and all necessary steps will be taken in order to ensure the availability and affordability of major petroleum products in the country. India is a major importer of crude oil and natural gas from West Asian countries. "We are continuously monitoring the evolving situation, and all necessary steps will be taken in order to ensure availability and affordability of major petroleum products in the country," the Ministry of Petroleum and Natural Gas said in a post on X. Moreover, the Department of Commerce, Ministry of Commerce and Industry, held a stakeholder consultation with all stakeholder ministries, key logistics and trade facilitation partners to review the emerging geo-political situation in West Asia and its potential impact on India's export-import cargo flows, including the export ecosystem. According to the Ministry of Commerce and Industry, the meeting was chaired by Special Secretary, Department of Commerce, Suchindra Misra and Lav Agarwal, Director General of Foreign Trade (DGFT). The meeting was attended by representatives from logistics operators and shipping lines/forwarders, Central Board of Indirect Taxes and Customs, Department of Financial Services, Ministry of Petroleum and Natural Gas, Ministry of Ports, Shipping and Waterways, the Reserve Bank of India, export promotion ecosystem and other concerned agencies. Stakeholders presented an assessment of the evolving operational environment, including routing and transit-time changes, vessel scheduling adjustments, container/equipment availability, freight and insurance cost trends, and implications for time-sensitive exports. "The discussions covered the need to maintain predictability in cargo movement, minimise avoidable delays, and ensure seamless documentation and payment processes for exporters and importers," the Commerce Ministry said in a statement. (ANI)
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