New India: The Marshall Islands-flagged LPG tanker “Symi” has arrived at Kandla Port in Kutch, Gujarat, carrying approximately 20,000 tons of gas. According to reports, the tanker crossed the strategically important Strait of Hormuz on May 13th and arrived in India.
Global Concerns Rise Over the Strait of Hormuz
The Strait of Hormuz is considered one of the world’s most important maritime energy routes. Due to ongoing tensions in West Asia and the US-Iran conflict, ships transiting this route are under close watch.
Amid fears of disruption to gas supply in India, a significant increase in the prices of commercial LPG cylinders has been recorded.
LPG Prices Rise in India
State-owned oil companies recently increased the prices of commercial LPG cylinders. The 19-kg cylinder has seen an increase of approximately ₹993 and the 5-kg cylinder has seen an increase of ₹261.50.
This is affecting migrant workers, community kitchens, canteens, dhabas, and small businesses. Prime Minister Narendra Modi has also appealed to people to use fuel judiciously.
India-UAE LPG Agreement
India and the United Arab Emirates have finalized several key agreements related to defense cooperation, long-term LPG supplies, and strategic oil storage.
Prime Minister Narendra Modi met with UAE President Mohamed bin Zayed Al Nahyan in Abu Dhabi. During the meeting, both countries emphasized energy security and maintaining a safe and open Strait of Hormuz.
Focus on Energy Security
To strengthen India’s energy security, an agreement has been reached between Indian Oil Corporation (IOCL) and ADNOC for long-term LPG supplies.
Adnoc and Indian Strategic Petroleum Reserves Limited (ISPRL) have also reached an agreement on the possibility of storing up to 30 million barrels of oil. This includes plans to develop strategic storage facilities in Visakhapatnam and Odisha.