Speaking about the ongoing global energy crisis, Raj Kumar Dubey said India may eventually have only a few options if international crude oil prices continue to remain elevated.
According to him, the burden could either be passed on to consumers through higher petrol and diesel prices, absorbed by oil companies through mounting losses, or managed through government support and deficit financing.
Dubey noted that crude oil prices had already risen sharply due to global tensions and damage to energy infrastructure.
“If this continues for a long time, the hike is inevitable,” he said, indicating that retail fuel prices may rise further if the situation does not improve.
Strait of Hormuz disruption raises global concerns
Dubey highlighted that more than 2 million barrels of oil supply had been affected at the Strait of Hormuz due to ongoing geopolitical instability.
The Strait of Hormuz remains one of the world’s most critical oil shipping routes, and any disruption there directly impacts global crude oil prices and energy security.
Despite the tensions, Dubey said India has managed to avoid fuel shortages because of aggressive diversification in oil sourcing.
BPCL and other Indian energy companies have significantly increased the number of global supply sources in recent years.
Dubey said India earlier depended on around 20 supply points but has now expanded to nearly 40, including imports from Russia, Africa and several other regions.
He stated that diversified sourcing has helped India maintain fuel supplies despite rising global tensions and disruptions in shipping routes.
According to him, domestic fuel consumption has actually increased during the crisis period, yet supply chains have remained stable without major shortages.
Oil crisis may accelerate India’s green energy push
Dubey also suggested that the ongoing oil crisis could speed up India’s transition towards cleaner and alternative energy sources.
He pointed to India’s growing solar power capacity and the government’s push towards ethanol blending, compressed biogas and hydrogen fuel initiatives.
India currently aims to increase natural gas usage to 15 percent of the country’s energy mix from the current 7-8 percent.
Dubey said the government’s ethanol blending programme has already helped reduce petrol dependency and foreign exchange pressure caused by fuel imports.
He added that long-term investment in solar energy, green hydrogen and alternative fuels would become increasingly important as global oil markets remain uncertain.
(With ANI inputs)
