Will we face a fuel crisis? PM Modi hints at war impact

India is more than 85% dependent on the import of crude oil, which is converted into petrol and diesel

NT Correspondent New Delhi/Bengaluru Prime Minister Narendra Modi on Friday made oblique reference to the widening conflicts in the Middle East and the ongoing Russia-Ukraine war, saying the two regions were crucial for the global economy and energy security. His comments came amid fears of further escalation of conflict in the Middle East if Israel were to retaliate and attack Iran, potentially its nuclear and oil facilities. This, analysts fear, could fuel a surge in energy prices and draw the region into a wider conflict.

Speaking at the 3rd edition of the Kautilya Economic Conclave here, Modi on the domestic front committed to continuing structural reforms to help India become a developed nation by 2047. "This conclave is happening at a time when the two big regions of the world are close to war-like situations. These two big regions are crucial for the global economy as well as energy security," he said without naming any country. India is more than 85 per cent dependent on the import of crude oil, which is converted into fuels like petrol and diesel, and about half of its gas needs. A bulk of these come from the Middle East, and in scenarios of Israel-Iran getting into prolonged conflict, the supplies could be impacted.

"In the midst of these big global uncertainties, we are all here witnessing the Indian era, we are discussing India. This shows the confidence in India... Whether it is science, technology or innovation, India clearly is at a sweet spot. Reform, perform and transform motto we are taking decision to take India forward," Modi said.