India Signs LPG and Strategic Oil Reserves Deal with UAE
India's Trade Deficit Jumps as Energy Import Prices Soar Iraq’s Iran-aligned Coordination Framework nominated… Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.
India on Fridaysigneda strategic agreement with the United Arab Emirates to receive liquefied petroleum gas from the UAE, as well as a Memorandum of Understanding (MoU) on strategic petroleum reserves.
India, which uses LPG as its the main cooking fuel and has felt shortages since the Iran war choked supplies at the Strait of Hormuz, seeks to boost its supply agreements.
Indian Prime Minister Narendra Modi signed the LPG supply deal and the strategic reserves pact during a quick two-hour visit to the UAE today, as India scrambles to ease energy supply pressures that are already hitting the economy.
The pact was signed hours after Indian state refiners raised their retail prices for gasoline and diesel for thefirst fuel price hikein India in four years.The hikeamounts to over 3% and was necessitated by the global crude oil price surge that resulted in losses for India's refiners.
Still, New Delhi put off the price hike for much longer than other governments, due to the sensitivity of Indian consumers to such hikes.
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Economic pain is intensifying for India every day that the Strait of Hormuz remains closed.
Modi this weekendurgedIndians to curb gasoline and diesel consumption, use public transportation where possible, and car pool as much as possible.
"Measures such these will help the nation conserve energy, save on the energy import bill and overcome the challenges arising out of the serious military conflict involving many energy producing nations," Oil Minister Hardeep Singh Purisaid.
Some LPG tankers have passed through the Strait of Hormuz since the war began, including one thatexited the chokepointfor the first time since the U.S.
Meanwhile, India is paying higher prices for LPG imports from elsewhere, as well as higher prices for crude oil that doesn't need to pass through the Strait of Hormuz, pressuring the current account and foreign reserves.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | ▲ +0.34% |
| WTI Crude | $96.90/bbl | ▲ +0.21% |
| EN590 Diesel | $846/MT | ▲ +0.18% |
| Jet Fuel A-1 | $1090/MT | ▲ +0.55% |
| Mazut M100 | $450/MT | ▼ -0.15% |
| Bitumen 60/70 | $470/MT | ▲ +0.08% |
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| Urea 46% Gran | $650/MT | ▲ +1.12% |
| NPK 16-16-16 | $460/MT | ▼ -0.28% |
| Nat Gas TTF | $15.42/MMBtu | ▲ +0.92% |
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