'Have petroleum reserve over 53L MT, sourcing energy from 41 countries': PM Modi outlines India's preparedness amid Iran war

New Delhi: Amidst the prevailing conflict in West Asia, global supply chains for crude oil and gas are facing disruption. The direct impact of this is clearly visible in India as well. Recently, the country has witnessed a rise in the prices of premium petrol. Against this backdrop, during the Budget Session of Parliament, Prime Minister Narendra Modi addressed the Lok Sabha today regarding the situation in West Asia, highlighting how India has benefited from preparations undertaken decades ago.

What did PM Modi say?

In his address, PM Modi stated, "It is imperative that a united voice from the Indian Parliament resonates across the world. India is among the nations most significantly affected by the conflict in West Asia. India imports vast quantities of essential commodities—such as crude oil, gas, and fertilizers—via the Strait of Hormuz. Since the outbreak of the conflict, maritime traffic through the Strait of Hormuz has become extremely challenging. Nevertheless, our government has strived to ensure that the supply of petrol, diesel, and gas remains largely uninterrupted, and our primary focus has been on minimizing any inconvenience to the common households of the country."

He further added, "The country imports 60% of its LPG requirements. Due to the uncertainties surrounding these supplies, domestic LPG production is being ramped up across the nation. Furthermore, continuous efforts have been undertaken to ensure that the supply of petrol and diesel remains unaffected under any circumstances. In the current geopolitical climate, the measures adopted over the past decade to bolster energy security have become even more pertinent."

How much oil reserves does India have?

Talking about India's petroleum reserves, PM Modi said, "Over the past 11 years, India has successfully diversified its energy import sources. Previously, India imported crude oil, LPG, and LNG—to meet these energy requirements—from just 27 countries. Today, however, India imports energy from 41 different nations. Over the last decade, India has also prioritized the creation of crude oil reserves. Currently, India possesses strategic petroleum reserves exceeding 5.3 million metric tons, and work is underway to establish additional reserves with a capacity of 6.5 million metric tons. This is in addition to the reserves maintained independently by our domestic oil companies. The government is also actively engaging with suppliers from various countries."

"The Government of India is keeping a close watch on shipping routes in the Gulf and surrounding regions. We are in constant communication with all our global partners to ensure that our trade corridors remain secure. In recent times, several of our ships that were stranded in the Strait of Hormuz have successfully returned," he added.

What measures did PM Modi outline?

1.  The Benefit of Ethanol

PM Modi stated, "During this time of crisis, another preparatory measure undertaken by the nation is proving to be extremely useful. Over the last 10–11 years, excellent work has been done regarding the production and blending of ethanol. Until a decade ago, ethanol blending in petrol stood at a mere 1–2%. However, we are now blending 20% ​​ethanol into petrol, a move that has reduced our annual petrol import requirement by approximately 45 million barrels."

2.  Railway Electrification

In his address, PM Modi noted, "Furthermore, the electrification of the railway network is yielding significant benefits. Had the railways not been electrified, we would have incurred an additional annual expenditure of approximately 1.8 billion liters of fuel." Evidently, an increase in diesel consumption would have led to higher imports, thereby having a direct impact on the national exchequer.

3. Metro Network and EVs

PM Modi remarked, "Similarly, we have expanded our metro network. While the metro network spanned less than 250 kilometers in 2014, it has today grown to cover approximately 1,100 kilometers. Additionally, the government has actively promoted electric mobility. The Central Government has provided 15,000 electric buses to various states for deployment. The scale at which work is currently being undertaken in the realm of alternative mobility will undoubtedly secure India's future."