India effectively navigated the energy disruptions triggered by the Gulf crisis and the US-Israel strike on Iran, maintaining uninterrupted fuel supplies and shielding consumers from the steep price hikes seen globally, according to Sushma Rawat, former Director (Exploration) at Oil and Natural Gas Corporation (ONGC). Rawat made the assessment on Monday, 29 June, praising the government's crisis management as the country's energy sector faced one of its sharpest geopolitical tests in recent years.

How India Managed the Crisis

Rawat rated the government's response between 8.5 and 9 out of 10, citing the absence of any supply shortfall despite severe turbulence in global energy markets. 'The Gulf crisis caused by the Iran war was handled very well by the Government of India,' she said. 'Consider a country like India with such a large population and nearly 30 million LPG users, along with a vast oil and gas sector. Despite the crisis, there was no supply shortage anywhere.'

Global Price Surge vs India's Restrained Hike

Global crude oil prices surged sharply during the crisis period, with benchmarks touching nearly $120 per barrel and hovering close to $116 for several days. Several countries raised retail fuel prices by 24 to 30 per cent, with some markets recording hikes as steep as 40 per cent. India, by contrast, raised fuel prices by only around 2–3 per cent in the initial phase — a deliberate policy choice, Rawat indicated, to protect ordinary consumers from additional financial stress.

Renewable Energy and Ethanol Milestones

Rawat also highlighted India's broader strides in energy self-reliance, noting that the country's installed renewable energy capacity has reached 51 per cent of total installed capacity. She pointed to the ethanol blending programme as another marker of progress, stating that India achieved its target of 20 per cent ethanol blending in petrol ahead of schedule. 'We are becoming stronger in the renewable energy sector with improvements every day,' she said.

Why the Assessment Matters

The Gulf crisis stress-tested India's energy supply chains at a moment when the country imports a significant share of its crude requirements. That no state recorded a supply disruption — despite global benchmarks breaching $120 per barrel — points to a combination of strategic reserves, diversified sourcing, and policy restraint on retail pricing. This comes amid a broader push by New Delhi to reduce dependence on any single supplier region, a strategy that appears to have provided meaningful insulation during the West Asia turmoil. Notably, India's early attainment of the 20 per cent ethanol blending target also reduced the volume of imported crude required, cushioning the demand side of the equation.

What Comes Next

With geopolitical tensions in West Asia remaining fluid, energy security analysts expect India to accelerate both its renewable capacity additions and its strategic petroleum reserve expansion. The government's ability to hold retail fuel prices near flat during a period of extreme global volatility will likely inform its pricing strategy in any future supply shock.