PM Modi Urges Citizens to Use Petroleum Products Wisely Amid Crisis
PM Modi's Call for Responsible Fuel Usage
New Delhi: On Sunday, Prime Minister Narendra Modi made a significant appeal to the public, urging them to use petroleum products judiciously in light of the ongoing crisis in West Asia. During an event in Hyderabad, he emphasized the need for restraint in fuel consumption, highlighting India's heavy reliance on fuel imports. Modi inaugurated development projects worth approximately ₹9,400 crores in Telangana. His appeal comes at a time when speculation about rising petrol and diesel prices is intensifying. Oil companies are reportedly incurring daily losses of around ₹1,600 to ₹1,700 crores due to selling petrol and diesel at subsidized rates.
Importance of PM Modi's Appeal
The Prime Minister's message is particularly crucial as India grapples with an energy crisis stemming from the US-Iran conflict. This conflict has led to the blockade of the Strait of Hormuz, disrupting the supply of essential fuels. The Strait is a vital global route for oil transportation. Modi stated, 'The current situation demands that we use petrol, gas, diesel, and similar products with great restraint. We should only use imported petroleum products when absolutely necessary. This will not only save foreign currency but also help mitigate the negative impacts of the war.'
Government's Focus on Renewable Energy
Modi also shed light on India's rapid advancements in renewable and alternative energy. He noted that India has emerged as one of the leading countries in solar energy production. He mentioned significant progress in blending ethanol with petrol as part of efforts to reduce dependence on imported fuels.
Multifaceted Energy Strategy
Highlighting the government's multifaceted energy strategy, PM Modi explained that the initial focus was on ensuring access to LPG. The current focus is now shifting towards expanding the supply of affordable piped gas. He further stated that the central government is actively promoting a CNG-based system to diversify energy sources.
Impact of Rising Crude Oil Prices
This appeal from PM Modi comes at a time when rising international crude oil prices are significantly impacting India's petroleum companies. Amid ongoing conflicts in West Asia, public sector oil companies like Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation have been selling petrol, diesel, and LPG at previous prices for the last ten weeks. This has resulted in daily losses of ₹1,600 to ₹1,700 crores for these companies.
Sources indicate that the total 'under-recovery' for these companies has exceeded ₹1 lakh crores over the past ten weeks, meaning they are selling at prices lower than their costs.
Despite a nearly 50% increase in crude prices, petrol and diesel prices in the country remain at levels from two years ago, with petrol priced at ₹94.77 per liter and diesel at ₹87.67 per liter in Delhi. Additionally, the price of domestic LPG cylinders was raised by ₹60 in March, yet it remains below the actual cost, fueling speculation about potential price hikes for petrol and diesel.