New Delhi [India], June 18 : Hardeep Singh Puri, Union Minister for Petroleum and Natural Gas, on Wednesday assured that there will be no shortage of crude oil and projected stability in fuel prices, despite global uncertainties.
Union Minister's assurance comes amid the ongoing conflict between Iran and Israel can possibly increase the cost of the manufactured items all over the world, since Iran is one of the major producers of crude. The rise in global commodity prices, especially crude oil and metals, will be key to India's trade deficit outlook.
Highlighting past reductions in petrol and diesel prices, specifically in November 2021, May 2022, and March 2024, Puri said India has maintained a disciplined pricing approach and does not foresee any major disruption ahead.
"I assure you that there will be no shortage of crude oil. In the last 3 years, prices have not increased, but have decreased. India is a country that does not increase the price of petrol and diesel, there were three such occasions in November 2021, May 2022 and March 2024, we reduced the prices, so now it would be better if it remains like this. I would not anticipate any disruption in this, I think there will be stability in prices," Union Minister said.
India is putting in all kinds of effort to ramp up its own traditional fossil-based energy production, and the latest push is to dig deep in the Andaman region.
Earlier speaking to ANI on Monday, Union Petroleum and Natural Gas Minister outlined several measures the government has been taking over the years for exploration and production. He also noted the exploration in the Andamans is pointing to "good news" and may end up becoming India's 'Guyana moment'.
The minister said India has 3.5 million square kilometres of sedimentary basin, but it never explored beyond eight per cent area, keeping a large expanse of sea beds untapped and unexplored.
Puri said that it is their government which had decided to explore a large part of the basin.
"There were parts of the sedimentary basin that were no-go areas. So one of the decisions which we took was that 1 million square kilometres of that sedimentary basin, which was no-go area, has suddenly been made available for E&P," the minister said.
So far in the nine round of open acreage licensing policy, 38 per cent of the bids came in that 1 million square kilometres and the Minister expects that in the next round -- for which work is going on right now - will attract more than 75 per cent of the bids.
The minister said that India has the potential of something around 42 billion tonnes of oil and gas equivalent in its sedimentary basins.
The minister also highlighted a few wells which India dug recently and found oil and gas reserves.
In Suryamani, he said, a potential of 4 million metric tons of oil equivalent was found. In Neelmani, a potential of 1.2 million metric tons of oil equivalent was found. In another well, at a depth of of 2,865 metres, both oil and gas reserves were found, the minister said.