West Asia Crisis: Don't panic! Essential sectors to be prioritised amid global challenge, says Indian govt

West Asia Crisis: The Narendra Modi 3.0 government on Wednesday held a special, inter-ministerial briefing on West Asia tensions. Four key departments shared details on the impact of ongoing disruptions in the Middle East on India, covering areas like crude oil, LNG and LPG supplies, and risks to energy trade routes including the Strait of Hormuz.

The government maintained that India’s crude oil supplies remain secure despite the West Asia tensions, with inflows currently placed larger than consumption. Diversification in crude imports has already boosted supplies and there is no cause for concern.

'Don't panic-book LPG refills'

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Seeking to allay growing concerns about a potential LPG shortage, the Centre said that India has stepped up its domestic production, with refineries running at maximum capacity. It also noted that panic booking is worsening the situation, urging consumers not to rush bookings.

LPG delivery is being monitored through a one-time delivery code to prevent diversion. Essential sectors will be prioritised and consumers should adopt gas-saving measures, it added. ​

Key takeaways from India’s inter-ministerial briefing on the Middle East crisis

Sujata Sharma

• Centre has taken various measures to ensure uninterrupted energy supplies
• Crude oil: India's crude supplies remain secure
• Our daily consumption is about 55 lakh barrels

• Oil inflows are higher than consumption

  Through diversified procurement, the volumes we have secured today exceed the normal Strait of Hormuz levels

• India imports crude oil from 40 countries

• There is no cause for concern regarding crude oil

• As a result of this diversification, about 70 per cent of our crude supplies are coming from routes outside the Strait of Hormuz

• As we speak, two cargos have set sails towards India; they will reach over the next few days
• Natural gas: Our daily consumption is at 189 million metric standard cubit metres
• Out of this, about 47.4MMSCMD of supplies are impacted by force majeure
• We import about 60 per cent of our LPG requirement
• Out of this, 90 per cent is from the Strait of Hormuz

• The government has directed an increase in domestic production in view of the shortage, refineries have stepped up production

• Refineries are operating at maximum capacity

• Domestic LPG production has been increased by about 25 per cent

• A committee of three OMC EDs has been established to assess commercial LPG demand and plan diversion accordingly

• The Saudi LPG benchmark has risen by up to 33 per cent

• Panic booking is making the situation appear more serious

• There is no need for rush booking

• Delivery is being ensured through a one-time delivery code to prevent arbitrary diversion at the distribution level

• LPG cylinder rebooking time has been increased from 21 days to 25 days

• This is a global challenge; therefore, essential sectors will be prioritised

• There is no need for panic booking

• People are advised to adopt gas-saving measures

Rajesh Kumar Sinha

• Shipping: Enhanced monitoring at all major ports in the country

• Real-time reporting of cargo management and handling is being carried out

• Port functioning is largely normal

• Currently, 28 Indian-flagged vessels are at sea

• Out of these, 24 vessels are west of the Strait of Hormuz, carrying 677 Indians

• Four vessels are east of the Strait of Hormuz, with 101 Indians onboard

• A 24x7 control room has been set up for monitoring; it is tracking the situation

Randhir Jaiswal

• Foreign affairs: A large number of Indians live in Gulf Cooperation Council (GCC) member countries

• It is the government's top priority and responsibility is to ensure their convenience and safety

• The External Affairs Minister and the ministry are in constant touch with the concerned countries

• A 24x7 control room has been set up along with security advisories and other updates

• Two Indian citizens have reportedly died while one is missing

Aseem R Mahajan

• Action is being taken to assist all Indian citizens and stranded travellers on the ground
• Continuous updates are being issued on visas and other issues, and every effort is being made through missions to provide assistance
• Helpline numbers are active
• Efforts are underway to meet requirements in time through inter-ministerial coordination and regular updates
• With airspace closures affecting travel, attempts are being made to arrange alternative options and secure transit visas from local administrations
• Efforts are being made to facilitate return through non-scheduled commercial flights
• Ensuring everyone’s safety remains the government’s top priority

C Senthil Rajan

• Domestic measures: The Home Secretary today held a meeting with all states and UTs
• States were asked to take action to prevent black marketing and hoarding
• Instructions were given to appoint spokespersons at the state level to ensure verified information reaches the public
• Emphasis was laid on ensuring preparedness through local administrations to deal with such situations

The briefing comes as the central government has affirmed no fuel shortages in the country, vowing consumer protection while closely monitoring the situation. This week, it invoked emergency powers to prioritise cooking gas supplies in households while expanding sourcing of fuel from countries located outside of the Strait of Hormuz route. It also moved to redirect gas supplies from non-priority sectors to essential users amid LNG supply disruptions in the region.

The country meets nearly half of its natural gas demand and four-fifths of its crude oil requirement through imports.