In the midst of the conflict between Russia and Ukraine, India’s government stated today that it is “closely monitoring global energy markets” and potential “energy supply disruptions” as a result of the changing geopolitical scenario.
The Ministry of petroleum and gas said, “With a view to ensuring energy justice for its citizens and for just energy transition towards a net-zero future, India stands ready to take appropriate action for ensuring ongoing supplies at stable prices.”
Ministry further added that India is also committed to supporting attempts to release “strategic” petroleum reserves in order to mitigate market volatility and calm the surge in crude oil prices.
Concerns that supply might be hampered as a result of Russia’s attack on Ukraine pushed international oil prices to a seven-year high of USD 105.58 on February 24. As a result of western sanctions on Russia, the rates have dropped below USD 100.
Prices are anticipated to rise as long as supply lines remain accessible. Petrol, gasoline, and cooking gas (LPG) prices have been frozen for over four months due to the election, but PSU oil corporations are anticipated to pass on higher global oil costs to consumers immediately after the Uttar Pradesh polls next month.
This was the first time India, which has 5.33 million tonnes of crude oil stored in subterranean chambers at three places along the east and west coastlines, had consented to release stockpiles for such a purpose. That was when petroleum was trading between USD 82 and USD 84 a barrel. It is now significantly higher.
