In the words of Prime Minister Narendra Modi, the calm in the fuel sector is something of a bulwark against what he terms the 21st century’s most formidable energy crisis. He makes the case that it was prompt, firm diplomacy and decision-making that stood between Indian homes and enterprises and the upheaval in global markets.
What the Prime Minister claimed
After the opening of the much-anticipated refinery in Rajasthan, PM Modi told those in attendance that a West Asian war had put other big economies in a bind. His reading of the situation is that India saw the writing on the wall, moved with purpose and used its ties overseas to stave off a hard landing on fuel.
Speaking in Balotra, he put the country’s ability to weather the storm down to the mettle of a new India. It was the resolve at every level and the way things were put into practice without fanfare, he said, that made the difference.
How India kept fuel flowing
The Prime Minister did not mince words about the risks: with some 60 per cent of LPG needs coming from abroad and 90 per cent of it passing through the Strait of Hormuz, any blockage in that waterway would have been an emergency of the first order.
To make sure that didn’t happen, he said, India has been procuring from close to 40 different nations. Even with supply lines under strain, domestic LPG has been steady. On top of that, the public sector oil companies have shouldered more than Rs 75,000 crore in losses so the consumer doesn’t have to feel the pinch of international rates.
There has been some direct relief as well. The cost of a commercial cylinder has come down in a meaningful way, which is welcome for the kind of business that buys in volume.
Rapid steps and numbers
This is the way PM Modi put the immediate figures:
– In a week, LPG output went from 35,000 to 54,000 metric tonnes
– More than 1.1 million homes now have a PNG connection
– Fuel has been brought in from 40 or so countries
– No hiccups in the home-grown LPG supply
Prices, access and the seven-day pivot
Some had it in their head that we would be looking at Rs 2,000 for a domestic cylinder. That never came to pass; they are still being put out for under Rs 950. The Prime Minister attributes this to some nifty policy work, like making refineries do double duty and rolling out more PNG to take the edge off demand.
He was at pains to point out that the whole matter was put to rest in a matter of days. There was a show of strength in how our missions and ministries worked in tandem during the conflict, he said.
Self-reliance push and Rajasthan’s refinery
For the Prime Minister, a country’s standing is inextricably tied to how independent it is. The Rajasthan venture is evidence of a way of governing that is about getting things done. It is a solid step toward not having to look outside for our energy needs.
On the same day, he also opened the new terminal at Jodhpur Airport, a place he says is already making waves online. Whether it is a refinery or an airport, these are all part of a plan to fortify the country.
Politics, accountability and what comes next
PM Modi didn’t shy away from the political side of things. He put it to the crowd that the refinery was left to fester by the Congress in the past and has only got going with a double-engine government. “You know me,” he said, “I put in the foundation stone and I am here to open it.”
While some may be sowing a little fear, the government has been at work behind the scenes to see to it that the taps don’t run dry. The moves made and the patience shown will go down in the record books, he added.
It is a matter of plain necessity for the small operator or the end user: you want your LPG when you need it, and you don’t want to be jolted at the counter. For the people in charge, the lesson is to have a cushion in place.
Ultimately, the Prime Minister’s line is that India has not only put up with the shock but has made of it what it could. With a focus on where we get our fuel and how we respond, the message is that if it happens again, we will be ready with a firmer hand on the wheel.
