India Well-Equipped to Meet Fuel Needs Amid Middle East Tensions, Says Hardeep Puri

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Union Petroleum and Natural Gas Minister Hardeep Singh Puri stated on Monday that India is adequately prepared to fulfil its fuel requirements, even amid increasing tensions in West Asia and fluctuating global oil markets.

He attributed India’s diversified energy import sources and improved domestic exploration efforts to the leadership of Prime Minister Narendra Modi, who made strategic decisions.

Following a review meeting with senior officials from the Petroleum Ministry and public sector oil companies, Puri shared on social media that India’s fuel supply remains stable. “In the growingly unstable geopolitical climate, evaluated the petroleum products supply scenario… With the foresight of PM Modi’s leadership, we are well-positioned to address our fuel supply requirements,” he remarked.

The gathering featured senior representatives from Indian Oil Corporation (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL). Conversations centred on maintaining supply stability in light of risks arising from the Israel-Iran conflict, potentially impacting global oil prices and crucial maritime trade routes for India.

Puri emphasised India’s initiatives to decrease reliance on any specific region by diversifying its crude oil import sources. He additionally highlighted the importance of domestic production, referencing new exploration efforts in the Andaman Sea, which he claimed might become India’s “Guyana moment”—a nod to Guyana’s impactful offshore oil finds.

India’s sedimentary basins cover 3.5 million square kilometres, but only 8% have been investigated to date. Puri disclosed that the administration has made available an extra 1 million square kilometres of formerly restricted zones for exploration and production (E&P). Interestingly, 38% of the offers in the ninth round of the Open Acreage Licensing Policy originated from these newly accessible areas. Puri indicated that the next round could have more than 75% of the bids focused on this region.

Furthermore, India has initiated one of the largest E&P bid offerings globally, encompassing 2.5 lakh square kilometres. The nation’s projected potential reserves are approximately 42 billion tonnes of oil and gas equivalent. Puri recognised that offshore exploration requires significant investment—up to USD 100 million per well, while onshore wells cost around USD 4 million.

ONGC, the state-run explorer, has achieved a record number of well drills this year, the most in forty years, as part of India’s ambitious initiative to enhance domestic oil production.

At the same time, the conflict between Israel and Iran presents wider economic threats. In FY2025, India’s trade with Iran surpassed USD 1.68 billion, while its trade with Israel exceeded USD 3.7 billion. Instability in this area might affect energy security and trade movements, yet government representatives are optimistic about India’s resilience.

India is gearing up to protect its economy from the repercussions of global geopolitical instability by merging strategic fuel reserves, varied imports, and revitalised exploration of local reserves.

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