India will navigate through geopolitical crisis if oil supply is not disrupted: Hardeep Singh Puri

Hardeep Singh Puri said India is closely watching the conflict unfolding between Israel and Hamas.

India would be able to navigate through geopolitical tensions if oil supply is not disrupted, said Union Minister of Petroleum and Natural Gas Hardeep Singh Puri on October 11.

Speaking on the sidelines of KPMG’s energy and resources conclave, Puri said India is closely watching the conflict unfolding between Israel and Hamas. “India is watching this on a real-time basis and will navigate through this both on (oil) availability and other factors,” he said.

Crude oil prices, which fell in the previous week due to demand concerns, witnessed a significant reversal after Hamas launched a large-scale surprise attack on Israel on October 7. Crude oil prices are trading at $87 per barrel on October 11.

The oil minister said that rising crude oil prices would have an adverse impact on attempts at global economic recovery.

Other than the conflict between Israel and Hamas, crude oil prices have also been on an upward trajectory due to supply cuts by Saudi Arabia and Russia. Puri pointed out that high oil prices could lead to similar economic turmoil as witnessed in 2008 when demand collapsed due to soaring prices.

India’s energy transition

Puri said that high prices act in favour of energy transition across the world. He added that India is moving rapidly in biofuels, with significant capacity addition underway.

“India is today the 3rd largest producer and user of ethanol, thanks to nearly tripling production in the past five years. Ethanol blending in petrol has increased from 1.5 percent in 2014 to currently ~11.70 percent,” he said.

India has advanced the 20 percent ethanol blending target to 2025-26, ahead by five years and approximately 5,000 fuel stations are already dispensing E20 fuel, the oil minister emphasised.

He added that India will account for 25 percent of global energy demand growth over the next two decades.