India
oi-Ashish Rana
As tensions continue to rise in West Asia following the war involving Iran, the United States and Israel, India has moved to secure its energy supplies by signing a strategic Liquified Petroleum Gas (LPG) agreement with the United Arab Emirates. The deal was finalised during Prime Minister Narendra Modi’s brief two-hour visit to Abu Dhabi and comes at a time when fears over global fuel supply disruptions are growing.
India signed a strategic LPG agreement and a MoU on strategic petroleum reserves with the UAE in Abu Dhabi during PM Modi’s visit, aiming to secure energy supplies amid global fuel disruption fears linked to West Asian conflicts.
India, currently the world’s second-largest importer of LPG, views the agreement as a major step towards protecting domestic energy needs during an uncertain global situation. The development also comes on the same day petrol and diesel prices in the country were increased by ₹3 per litre each.
India, UAE Sign Key Energy Agreements During Modi Visit
Prime Minister Narendra Modi met UAE President Sheikh Mohamed bin Zayed Al Nahyan during his stopover in Abu Dhabi while travelling to the India-Nordic Summit. During the meeting, both countries signed several agreements focused on energy security, defence cooperation and infrastructure development.
Along with the LPG supply agreement, India and the UAE also signed a Memorandum of Understanding on strategic petroleum reserves. The move is expected to strengthen India’s preparedness against possible disruptions in global crude and gas supply chains caused by the ongoing conflict in West Asia.
Another agreement signed between the two countries focused on creating a framework for strategic defence cooperation. In addition, an MoU was signed for the development of a ship repair cluster at Vadinar in Gujarat.
Modi’s Energy-Saving Appeal Gains Significance
The timing of Modi’s UAE visit has drawn significant attention because it comes only days after the Prime Minister appealed to citizens to adopt fuel-saving measures amid the growing global crisis.
Modi had urged offices and institutions to promote work-from-home arrangements wherever possible in order to reduce fuel consumption. He also encouraged people travelling to offices to use public transport or opt for carpooling as part of a broader energy-efficiency effort.
The Prime Minister framed these measures as a patriotic responsibility aimed at reducing the economic burden on India during the ongoing geopolitical crisis.
In another notable appeal, Modi advised citizens to avoid foreign trips and postpone gold purchases for around a year, signalling the seriousness of the economic pressures emerging from the war situation in West Asia.
Petrol, Diesel Prices Increased By ₹3 Per Litre
Days after the Prime Minister’s address, state-run oil marketing companies increased petrol and diesel prices across the country by ₹3 per litre on Friday.
Following the revision, petrol prices rose from ₹94.77 per litre to ₹97.77 per litre, while diesel prices increased from ₹87.67 per litre to ₹90.67 per litre. Final retail prices, however, continue to vary across cities depending on local taxes and levies.
The hike had been anticipated after Petroleum Minister Hardeep Singh Puri earlier indicated that fuel price revisions could become necessary due to changing global market conditions.
India Looks To Shield Economy From Global Energy Shock
With uncertainty deepening in the international energy market, India’s latest agreements with the UAE are being viewed as part of a larger strategy to safeguard fuel supplies and reduce the impact of the ongoing West Asia conflict on the domestic economy.
The LPG agreement, coupled with strategic petroleum reserve cooperation, is expected to provide India with additional stability at a time when global oil and gas markets are witnessing volatility due to geopolitical tensions.
