Prime Minister Modi stated that the Indian government has been actively increasing domestic production of liquefied petroleum gas (LPG), diversifying crude oil supplies, and using diplomacy to protect consumers from sharp price increases and shortages during the most severe energy crisis in decades, triggered by the Middle East war.
Refining Expansion
Speaking at the inauguration ceremony of the new HPCL Rajasthan Refinery Ltd refinery and petrochemical complex in Pachpaddra, Balotra district, Rajasthan state, Modi noted that this refinery is part of the country's planned increase in production capacity. He emphasized that no new refineries had been built in the US in the last fifty years, while European capacities were steadily declining. Because of this, India has become the fourth-largest refining power in the world, and the country plans to continue building this potential.
Overcoming the Energy Crisis
According to the Prime Minister, India managed to overcome what he called the biggest energy crisis of the 21st century through timely policy measures and strategic decisions that allowed the country to weather the shocks. Modi noted that while some forces publicly spread rumors and sowed fear, enormous work was being done around the clock behind the scenes.
He added that those who wished for India's failure and predicted its collapse are now, in his opinion, 'drowning in despair.' During the crisis, the priority was maintaining sufficient supplies of cooking gas, as India imports about 60% of its LPG needs, with nearly 90% of these supplies coming from Gulf countries via the Strait of Hormuz before the conflict began.
Support Measures and Diplomacy
Modi recounted that as soon as the crisis began, refineries were ordered to maximize LPG production. As a result, LPG production increased from 35,000 tons to 54,000 tons in seven days. Furthermore, the government expanded connections to the gas distribution network to reduce the strain on LPG reserves. Despite disruptions, domestic consumers were protected from the full impact of the price surge. The crisis led to crude oil prices rising from approximately $70 to $120 per barrel and disrupted supply chains; however, the Prime Minister stressed that no fuel rationing was implemented even for one day.
He also mentioned that oil companies in India incurred losses exceeding 75,000 crore rupees between April and June. Modi attributed India's success to its diplomatic efforts, which helped diversify energy imports during the crisis. Before the conflict, India sourced crude and other energy from about 26 countries, and during the crisis, this number rose to over 40. Modi stated that India sent a clear signal to the world: 'for us, national interests and the well-being of our citizens are paramount.'
