What will be the implications of USA’s sanction on Iran’s oil supply for India? Discuss the India’s preparatory plan to counter it (200 Words)
Refer - The Indian Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 5 years
KEY POINTS
Implications of USA’s sanctions
· Iran was the fourth largest supplier of oil to India in 2018-19, and other suppliers may not provide the same benefits in the form of price and credit facilities.
· The US move comes at a time when the price of the Indian crude basket, an average of the Dubai, Oman and Brent crude benchmarks have been rising, and the country is in the middle of Lok Sabha elections.
· The big concern is that the substitute crude suppliers — Saudi Arabia, Kuwait, Iraq, Nigeria and the US — do not offer the attractive options that Iran does, including 60-day credit, and free insurance and shipping.
· The challenge is to secure an alternative supplier at competitive terms in an already tightening global situation.
· The projected drop in Iranian exports could further squeeze supply in a tight market — given the US has also sanctioned Venezuela, and the OPEC and allied producers including Russia have voluntarily cut output, which has pushed up oil prices more than 35% this year.
· The price of Brent crude, the global oil benchmark, rose as much as 3.3% the highest intraday level in almost six months, immediately after the US announced its decision to end the Iran oil waiver.
India’s preparatory plan
· ISPRL, India’s strategic petroleum reserves limited, MoU with Saudi Arabia’s ADNOC limited to increase the oil availability in Managalore, padur.
· India’s shift to renewables like solar, wind, geothermal energy.
· FAME scheme increases the reliability on electric vehicles.
· National bio fuels policy 2018 (ethanol blending with petrol), SATAT initiative (Compressed bio gas).
Vandana 5 years
Kindly review
IAS Parliament 5 years
Try to include implications in context of Iran oil supply, include about Indian strategic petroleum reserves programme. Keep Writing.
VENOM 5 years
Please review sir
IAS Parliament 5 years
Try to include India Strategic petroleum reserves programme, Ethanol blending, SATAT initiative etc. Keep Writing.
SARI 5 years
Please Review
IAS Parliament 5 years
Need better understanding. Try to include implications in context of Iran's oil supply, not in general as such, include Indian strategic petroleum reserves programme, shift to renewable energy to reduce dependence on oil etc.Keep Writing.
