Hardeep Singh Puri cites supply route disruptions for global oil price volatility

Indian Petroleum and Natural Gas Minister Hardeep Singh Puri stated that the global energy market is currently facing disruptions in supply routes rather than an actual shortage of oil. He noted that while global consumption stands at 94 million barrels per day, available supply is approximately 104 million barrels per day. High energy prices and freight costs are being driven by choked supply routes, including geopolitical tensions in the Russia-Ukraine conflict and disruptions near the Strait of Hormuz and the Red Sea.

To mitigate exposure to international market volatility, India is focusing on increasing domestic oil and gas production through initiatives like Samudra Manthan. Additionally, Puri emphasized the necessity of utilizing domestic biomass to increase India’s gas mix from the current 6 to 7 percent toward a target of 15 percent. To support this, the government is implementing the GOBARdhan Yojana, which provides capital expenditure assistance for Compressed Biogas (CBG) plants to create a new domestic ecosystem.