It is time India adopted an energy policy which protects the country from uncertainties arising from geopolitics. Whenever there is turmoil in West Asia or other large oil-producing nations, an immediate impact is felt on oil guzzlers such as India, sparking debate on how to cope with the situation.
Some of the standard responses from policymakers in India are: “we are closely watching the situation”; “we are expanding our energy portfolio”; and “we are not dependent on one region for our crude oil purchase”.
But the fact is that India’s crude oil demand is largely met by imports — over 80 per cent. And, maximum supply comes from the Gulf region, particularly Iraq and Saudi Arabia. There was a time when Iran was also a key player till American sanctions hit the Islamic nation.