India’s energy strategy needs price correction
The article discusses India's energy strategy amidst global geopolitical tensions, particularly concerning the Strait of Hormuz, which has led to surging crude oil prices and increased shipping costs. Despite this, India has maintained relatively stable domestic fuel prices through state intervention, supply diversification (beyond the Gulf to Russia, US, West Africa), increased strategic reserves (including an agreement with UAE), and financial absorption by public sector Oil Marketing Companies (OMCs). While these measures have provided short-term relief, they come at a steep cost, straining OMC finances and public funds. The article argues that India's vulnerability is structural, not temporary, and calls for a calibrated price correction (a one-time hike of at least 13%) to reduce the fiscal burden, stabilize OMCs, and encourage responsible consumption, preparing the economy for a new era of fragile energy security.
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