Due to ongoing US- Iran conflict the global energy markets have impacted widely, to which India and United Arab Emirates (UAE) signed a pact on LPG supply and strategic oil reserves, on Friday, aimed at securing India’s fuel needs in the midst of rising geopolitical uncertainty.
The pact was signed during India’s PM Narendra Modi’s brief visit to Abu Dhabi. India ranks second globally for LPG imports, making the deal a significant one amid the crude oil supply chain disruptions and hike in fuel prices raising concerns over India’s future consumption.
The Indian PM met UAE President Sheikh Mohamed bin Zayed Al Nahyan on a two hour stopover in Abu Dhabi en route to the India – Nordic Summit.
Which led to a signed LPG supply pact and MoU on strategic petroleum reserves.
Additional agreements included a strategic defense partnership framework and a MoU for a ship repair cluster in Gujarat’s Vadinar.
Strategic Oil Reserve Agreements
These energy deals between India and UAE occur amid times where many nations are uncertain about their fuel supplies and crude oil prices due to the recent rise in tensions in West Asia.
It is anticipated that the LPG deal will ensure stable fuel supply for India in light of the current global energy crisis. The other MOU signed by both nations regarding strategic petroleum reserves will ensure energy cooperation between them in the long run.
India has been relying heavily on imported fuel to fulfill its nation’s energy needs, making energy relationships with countries like UAE essential in times of geopolitical crises.
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Modi’s UAE Visit Comes after addressing Austerity
Prime Minister Modi’s UAE visit also comes days after he addressed the citizens about reducing their fuel consumption considering the present state of the world.
Modi had called upon the people to follow work-from-home methods where possible, while encouraging office-goers to take public transportation or share cars in order to conserve fuel.
He had also advised citizens to avoid unnecessary foreign travels and not purchase gold for a year, emphasizing that energy conservation was the responsibility of every citizen during uncertain economic times globally.
The Centre has recently highlighted the possible economic impact of the ongoing West Asia conflict on fuel imports and domestic prices.
Petrol and Diesel Prices Increased by ₹3 Across India
State-run oil companies on Friday increased petrol and diesel prices by ₹3 per litre each across the country.
Petrol and diesel prices have been revised to ₹97.77 and ₹90.67 per litre respectively, after increasing from ₹94.77 and ₹87.67 per litre respectively.
Prices for fuels are still different in various cities depending on the taxes imposed on them.
The recent price rise comes after hints from India’s Petroleum Minister Hardeep Singh Puri about probable revisions in fuel prices due to volatile global crude oil markets.
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