India Maintains Fuel Supply Amid Strait of Hormuz Crisis, Says S&P Global Energy Official
India shielded fuel supply through crude diversification amid Hormuz turmoil: S&P Global Energy official
The Economic TimesImage: The Economic Times
Despite disruptions in global energy markets due to the Strait of Hormuz crisis, India has successfully diversified its crude oil sources, ensuring robust refinery operations. Pulkit Agarwal from S&P Global Energy highlighted that India's strategic purchases, including increased imports from Russia, have shielded domestic fuel supplies from rising global prices.
- 01India has diversified crude oil purchases to maintain fuel supply amid global disruptions.
- 02Increased imports from Russia have been a key strategy for India.
- 03Domestic fuel prices are currently shielded from rising global crude prices.
- 04India's refinery run rates remain robust despite the turmoil in energy markets.
- 05Strategic petroleum reserves in India are lower compared to other major Asian economies.
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India's refinery operations remain strong despite the ongoing crisis in the Strait of Hormuz, according to Pulkit Agarwal, Head of India Content at S&P Global Energy. He noted that India has diversified its crude oil purchases significantly over the past two months, particularly increasing imports of Russian oil. This strategy has allowed India to maintain a steady supply of fuel, with refinery run rates staying robust. Agarwal emphasized that while the closure of the Strait of Hormuz has impacted global energy markets, India's proactive approach has kept domestic fuel supplies stable. He pointed out that Indian consumers are currently shielded from the full brunt of rising global crude prices, which could reach $120-130 per barrel in the coming months. However, he acknowledged that India's strategic petroleum reserves are not on par with those of larger economies like China, Japan, and South Korea, which poses a challenge for future energy security. Agarwal indicated that even if the conflict were to end immediately, it would take 10-20 weeks for Middle Eastern energy flows to stabilize.
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India's diversified crude sourcing helps stabilize domestic fuel prices, preventing sharp increases for consumers despite global volatility.
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