‘India is carefully monitoring the rising prices of crude oil’- Petroleum Minister Puri
New Delhi| India is carefully monitoring the rise in global oil prices due to the increasing conflict in West Asia. India is confident that it will deal with any challenge in this matter. Petroleum Minister Hardeep Singh Puri expressed this confidence.
Internationally, oil prices have risen from $70 a barrel to more than $78 a barrel. The market is eyeing whether Israel will respond to the missile attack by Iran last week? “We are monitoring the situation very carefully”, Puri said at ExxonMobil Global Outlook 2024 in New Delhi He said that if tensions increase in the Middle East, the availability of energy may be affected.
But supplies have not been affected and India, the world’s third largest oil consumer and importer, is confident of being able to deal with any situation. “I am confident that we will be able to move forward as before”, he said Puri said there is no shortage of oil and India is confident of meeting its needs.
Following the Iranian missile attack, it is being speculated that Israel may target oil or nuclear facilities in Iran. On the other hand, there were speculations that Tehran might choose to respond either by directly attacking Israel or by closing the Strait of Hormuz. It is the most important route in the world in terms of oil traffic and its blockage can further increase oil prices.
The Strait of Hormuz, located between Oman and Iran, connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. One fifth of global oil passes through this strait. Oil from all major oil producers – Saudi Arabia, Iraq, Kuwait and UAE – is exported through this strait.
Only Saudi Arabia and the United Arab Emirates (UAE) have pipelines that can cross the Strait of Hormuz. Petrol and diesel price cuts were expected ahead of the biggest surge in crude oil prices since January 2023.
Before September, the price of one barrel of crude oil imported from India averaged $73.69 per barrel. This rate was lower than the March price of around $83-84 per barrel, when petrol and diesel prices were last cut by Rs 2 per litre. At present, the price of petrol in the national capital is Rs 94.72 per liter and the price of diesel is Rs 87.62 per liter.
