India’s energy stuck in the sea, 10 foreign ships stuck in the Persian Gulf, crisis looms over the supply of LPG and crude oil.

News India Live, Digital Desk: Amidst the ongoing fierce conflict in West Asia, worrying news is emerging regarding India’s energy security. At least 10 foreign-flagged ships coming to India are stuck in the Persian Gulf due to the ongoing tension near the strategically important Strait of Hormuz. These ships are loaded with huge quantities of Crude Oil, LPG and LNG. The Central Government is keeping a close watch on the situation and diplomatic channels are being used to safely rescue the stranded ships.

18 Indian ships also in queue along with foreign ships

According to the latest data from the Shipping Ministry, not only foreign ships but also 18 Indian flag ships are stuck in this area. Of the 10 stranded foreign ships, three are loaded with LPG, four with crude oil and three with Liquefied Natural Gas (LNG). Rajesh Sinha, special secretary in the ministry, clarified that the first priority of the government is to ensure the safe return of Indian ships and about 485 Indian sailors aboard them. However, in the meantime, it is a relief news that the safe passage of two LPG ships—BW TYR and BW ELM—will reach Mumbai and Mangaluru ports soon.

Skyrocketing insurance premiums and freight costs

War conditions have broken the back of the global shipping market. According to reports, the insurance premium of ships has increased manifold after the Persian Gulf and the Strait of Hormuz were declared ‘high-risk areas’. The premium, which earlier used to be 0.04% of the sum assured, has now jumped to 0.7% or even more. This is having a direct impact on the cost of imports, due to which there is a possibility of increase in the prices of fuel and gas in future.

Government’s preparation: Domestic shortage will not be allowed

Even though the situation at sea is tense, the Petroleum Ministry has assured the countrymen that India has sufficient stocks. The government has given priority to PNG and CNG to maintain the domestic supply. There has been a slight reduction in gas supply to the industrial sector so that there is no shortage of cooking gas in homes. Along with this, India is now intensifying the purchase of alternative gas and oil from countries like America, Russia and Australia so as to reduce the risk of dependence on Gulf countries.