Disruption on supply routes driving up prices: Oil Minister
Puri pointed out that the global energy situation remains challenging, but the government is closely monitoring the situation
Oil Minister Hardeep Singh Puri clarified on Thursday that the rising crude oil prices are not due to a global supply shortage, but rather the result of congested supply routes, which are increasing freight costs. Addressing the media during the 20th Foundation Day celebrations of the Petroleum and Natural Gas Regulatory Board (PNGRB), Puri emphasized that the world currently possesses sufficient oil reserves, with 104 million barrels being produced daily.
However, the bottleneck in supply routes and subsequent surging freight rates are the factors contributing to the price hike. He explained that global oil consumption is presently lower than the available supply, with consumption standing at approximately 94 million barrels compared to the total available oil of 104 million barrels per day.
Puri highlighted that since 2022, the Indian government has been diligently working to ensure the affordability of critical energy commodities for its population of 1.4 billion citizens. Despite ongoing disruptions in crude oil and natural gas supplies due to the West Asia crisis and the Strait of Hormuz, India has managed to maintain its insulation from global energy market turbulence.
The minister stated that while the global energy situation remains challenging, the government is continuously monitoring the development. India has also diversified its crude oil sources from 27 to 41 to ensure the management of any potential supply disruptions.
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