India’s LPG Imports Surge From the US, Accounting for 67% and Diminishing Dependence on Gulf Countries, Says Hardeep Puri

Recent statements from Union Minister for Petroleum and Natural Gas Hardeep Singh Puri have addressed growing concerns about potential changes in India’s cooking gas policy. Minister Puri categorically dismissed speculative reports regarding the imposition of a levy on cooking gas, emphasizing that no proposals of this nature are currently under consideration. His remarks come amidst a backdrop of fluctuating global crude prices, which have contributed to gradual increases in petrol and diesel rates. The government’s previous excise duty cuts have, however, mitigated these increases, positioning Indian fuel prices as competitive on a global scale.

In his address at the 7th CII International Energy Conference, Puri highlighted the resilience of India’s fuel distribution network, which has successfully navigated recent market disruptions. He pointed to the intensive testing regime for ethanol-blended petrol, where only a minuscule fraction of contamination cases were reported, countering rising skepticism on fuel quality. The expansion of India’s retail outlets from 52,000 in 2014 to approximately 107,000 today underscores a robust domestic energy infrastructure, capable of meeting consumer demand even in the face of global supply pressures.

Puri further noted India’s significant position in the global energy landscape, now recognized as the world’s third-largest consumer and importer of energy, and the fourth-largest refiner. With energy demand projected to grow at three times the global average, India is expected to account for nearly 30% of the anticipated rise in global oil demand by 2050. This dynamic contrasts sharply with declining refining capabilities in Europe and the United States, where substantial losses in refining capacity have been reported.

In terms of gas supply, the minister mentioned successful domestic initiatives aimed at increasing LPG production, thus reducing dependence on Gulf imports. The collaboration between ONGC, Petrobras, and BP to revitalize older offshore fields reflects a proactive approach by the government to optimize energy production. Puri’s cautiously optimistic outlook indicates confidence in India’s ability to manage the complexities of the global energy market, even as uncertainties loom on the horizon.

Source: Hindustan Times

(Expert Note: This report was prepared by the Wealthova team.)