India's energy strategy has kept domestic consumers largely insulated from big fuel price hikes amid West Asia crisis,former Ambassador Sunjay Sudhir says. Global fuel prices shot up 25-30%,but India held its domestic hikes to just 7% through supply and demand measures.
Sudhir credits government's proactive steps,like cutting excise duties and absorbing oil companies' losses. Indian crude basket jumped from $70 to $156 per barrel,but interventions kept consumer prices steady. "That short-term pain was crucial to keeping country's macroeconomics stable," he said.
Government set up inter-ministerial group early in crisis,enabling coordinated efforts across ministries. This strategy,plus effective diplomacy,secured safe passage for vessels through Strait of Hormuz,critical for India's energy imports. Sudhir noted during conflict peak,India safely navigated 12 vessels,then 11 Very Large Crude Carriers after a Memorandum of Understanding was signed.
Looking ahead,Sudhir stressed need for moving from crisis management to sustainable energy framework . India has diversified energy sources,becoming top importer of Russian crude and US liquefied petroleum gas. But strategic petroleum reserves need expansion. Now at 5.33 million metric tons,covering only about 9.5 days of supply. Not enough,he said .
Sudhir praised India's Digital Public Infrastructure for supply chain efficiency . This infrastructure,developed over two decades,prevents leakages and ensures consumers get LPG and LNG they booked. "It's very important to make sure individual consumer continues to get LPG or LNG," he noted.
He also pointed to city gas distribution shift as a future investment. Building infrastructure is time-consuming,costly,but promises more reliable,economical energy distribution.
Geopolitically, Sudhir expressed cautious optimism on lasting peace in West Asia . But warned of potential volatility,especially around Israel's role. "The biggest X-factor is Israel,its domestic politics,Lebanon,and Hezbollah," he remarked . Israel's actions could heavily sway the region's stability…
