With growing concern in India of energy shutdown, mainly in West Asia on the side of Iran, Prime Minister Narendra Modi addressed the country, to keep the calm down but recognize there are still risks worldwide that are uncertain.
All the speculation started after Modi in recent speeches and parliamentary moments mentioned that long-term effect of the conflict and compared it to the COVID-19 pandemic. Fear of fuel shortages, LPG shortages and even a 2020 lockdown caused a torrent of panic to hit the public.
And yet, a closer look at his remarks would show the existence of no announcement of any “energy lockdown” in India.
What PM Modi Actually said
In his comments, the Prime Minister said his Government is trying to minimize the adverse impact of Iran conflict on the lives of the poor and to ensure that the rest will remain supplied for their living needs when necessary and there will be sufficient cash.
He also stressed not to hurry; people should not fear for fear around the rumours of shortages and they must consider the LPG and fuel and fuel shortages in various ways. Modi said India has been through crises before and we will be able to solve the present problems as well.
In fact, according to government data India has very significant petroleum reserves and is working to develop these petroleum reserves even more to improve energy security.
Why COVID Was Mentioned
The reference to COVID-19 has been mischaracterised in practice by many. Modi didn’t even call there a return to Lockdown-like control, he said. Rather he portrayed the pandemic as a manifestation of humanity’s resilience and preparedness.
India was faced with extremely unusual challenges during the COVID-19 crisis due to the coordination between government, states and people. When Modi used the time period we could sense that was to remind the Japanese to behave well, to not be reckless, to be patient, to stay united and be prepared for the world uncertainty -- not to propose the need for sudden changes in strategy in the context of the world economic situation.
They say this comparison is more of a mindset than policy. The global situation particularly in case of fuel movement in areas of oil supply in the Strait of Hormuz will cause both production challenges or price fluctuations. And a sense of urgency and a calm handle make good on the panic-driven disruption.
World Energy Disruption is the Real Problem
The ongoing conflict in West Asia is already affecting global supply chains. Attacks on energy infrastructure and challenges of tension in key shipping routes and in energy infrastructure have raised concern around the world.
Hence India, which imports nearly all of its crude oil and gas, is at risk of seeing a rise price swings in gas, and supply pressures that can be exacerbated by a more imminent hurricane. There are already reports of disruptions to gas supply to small businesses and residential properties in some regions.
No Lockdown in 2020, but Caution-ful
There is no official plan and no official picture of an “energy lockdown” in India as we speak out. The government is focused on supply stability, control inflation, and prevent panic, he told us.
Modi’s message was straightforward:
- Stay alert, not afraid
Trust verified information - Make sure that you have prepared for some global uncertainty
The coming weeks will depend a lot on how the situation around the world changes. So far India is in a stable but passive position in terms of tightening the reins of control rather than going across the line of control.
