New Delhi [India], March 12 : Leader of Opposition in Lok Sabha, Rahul Gandhi on Thursday warned that the ongoing conflict in West Asia and the closure of the Strait of Hormuz could have serious consequences for India's energy security, saying that "the pain has just started."
Speaking in the Lok Sabha, Rahul Gandhi said the war involving the United States, Israel and Iran is likely to have far-reaching global and domestic repercussions. He noted that the Strait of Hormuz, through which nearly 20% of the world's oil supply passes, has been blocked, creating a major disruption in global energy flows.
He emphasised that the development is particularly concerning for India, as a significant share of the country's oil and natural gas imports passes through this crucial maritime route. Gandhi warned that the impact is already beginning to be felt across the country, claiming that restaurants are shutting down and there is growing panic among people over LPG availability.
"A war has broken out in the Middle East. The United States, Israel and Iran are at war. This war is going to have far-reaching consequences. The central artery from where 20 % of the global oil flows, the Strait of Hormuz, has been closed. This is going to have tremendous repercussions, particularly for us, because a very large portion of our oil and natural gas comes through the Strait of Hormuz. The pain has just started. Restaurants are closing. There's widespread panic about LPG...This is only the beginning," Rahul Gandhi said.
Gandhi further stressed that energy security forms the foundation of any nation's stability. He criticised the idea of allowing external powers to influence India's decisions regarding its energy partnerships.
According to him, India should independently determine from whom it purchases oil and gas. He questioned why a country of India's size would allow another nation, referring to US President Donald Trump, to influence whether India can buy oil from Russia or shape its relationships with global energy suppliers.
"The foundation of every single nation is its energy security. Allowing the United States to decide who we buy oil from, who we buy gas from, and whether we can buy oil from Russia or not...Our relationship with different oil suppliers can be decided by us. This is what has been bartered...Why a nation the size of India would allow any other nation, the President of another nation to give us permission to buy Russian oil, to decide who our relationships are with," Rahul Gandhi said.
With the West Asia Conflict putting stress on fuel supply routes that use the Strait of Hormuz, sources said that Iranian authorities have decided to allow Indian flagged ships to pass safely through the Strait, where maritime traffic has all but halted since the US and Israel attacked Iran.
Meanwhile, the Union Government on Tuesday invoked the Essential Commodities Act (EC Act ) to ensure an uninterrupted supply of domestic cooking gas, directing refineries and petrochemical units to maximise production of liquefied petroleum gas (LPG) and divert key hydrocarbon streams to the LPG pool.
According to the order, the supply of natural gas to certain sectors shall be treated as priority allocation and shall be maintained subject to operational availability to one hundred per cent. of their average past six-month gas consumption. These sectors include: Domestic Piped Natural Gas supply; Compressed Natural Gas for transport; LPG production, including LPG shrinkage requirements; Pipeline compressor fuel and other essential pipeline operational requirements.
The order further states that the supply of natural gas to the fertiliser plants shall ensure seventy per cent. of their past six-month average gas consumption, subject to operational availability. It has also asked gas marketing entities to ensure that gas supply to tea industries, manufacturing and other industrial consumers supplied through the national gas grid is maintained at eighty per cent. of their past six-month average gas consumption, subject to operational availability.
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