The closure of the Strait of Hormuz on February 28 posed a severe threat to global energy markets, but the Indian government’s prompt response ensured a steady fuel supply in the country, according to Navdeep Suri, former Ambassador of India to the UAE. Suri commended India’s proactive energy diplomacy, citing strong relationships with key nations like the UAE, Saudi Arabia, and Qatar as instrumental in maintaining energy flows. Notably, diplomatic efforts extended to diversifying energy sources, including collaborations with Russia, the United States, Venezuela, Nigeria, Gabon, Guyana, and other unconventional suppliers in Africa and Latin America.
During the crisis, India managed to stabilize fuel prices for consumers by absorbing cost increases. The government and oil companies took measures to shield consumers from the surge in global oil prices post the conflict outbreak on February 28. Suri emphasized the government’s commitment to keeping prices affordable by absorbing a significant portion of the price hike, particularly when oil prices surged from $70 to $126 per barrel. India’s strategic approach included securing supplies from various regions and enhancing domestic production of LPG to mitigate potential shortages.
In contrast to countries experiencing energy shortages, India’s effective demand management and diversified supply chain strategies shielded it from significant disruptions. Suri highlighted India’s resilience in maintaining a stable energy supply, contrasting it with countries like Pakistan where schools closed and fuel shortages led to long queues. The combination of securing diverse energy sources and implementing efficient demand-side measures played a pivotal role in safeguarding India from the energy crisis.
