Improving relations: Neighbors seek emergency fuel, India expresses goodwill

Several countries in the subcontinent have turned to India for additional fuel as ongoing conflicts in the Middle East limit energy supplies from the Persian Gulf.This comes after the Strait of Hormuz was effectively closed, leaving several countries in South Asia with limited stocks and few alternative supply routes.MEA spokesman Randhir Jaiswal told a news conference that New Delhi was reviewing requests from several countries.“We have received requests from some neighboring countries for energy exports, including diesel from Bangladesh. We will consider domestic supply and production before taking any decision,” Jaiswal said.He added that similar requests had also been received from Sri Lanka and the Maldives and were being reviewed. Jaiswal stressed that any decision on supply of petroleum products would take into account India’s internal energy needs.While India has yet to approve additional fuel requests, New Delhi’s status as the world’s fourth-largest oil refiner gives it room to respond to the crisis, deepening regional ties and cementing its position as a reliable partner in South Asia.Countries seeking help from IndiaNepalNepal has asked Indian Oil Corporation to increase monthly liquefied petroleum gas (LPG) supplies amid the ongoing crisis.Kathmandu asked for an additional 3,000 tons of LPG but was told that only the amount stipulated in the contract could be delivered so far, the deputy director general of the state-run Nepal Petroleum Corporation told Bloomberg.Under existing agreements, Nepal currently receives about 48,000 tons of LPG per month from international oil companies.Nepal is completely dependent on India for its fuel supply. Panic buying in the country has led households to hoard cooking gas cylinders, prompting authorities to restrict distribution.“The weight of a normal LPG cylinder is 14.2 kg and we have decided to reduce it to 7.1 kg from today,” said Manoj Kumar Thakur.BangladeshDhaka also asked India to supply additional diesel fuel on top of the 180,000 tons per year stipulated in the existing contract. Just weeks after taking office, the Bangladeshi government faces the prospect of severe fuel shortages.Bangladesh, which imports more than 80% of its energy from the Middle East, imposed austerity measures last week, with the newly elected government closing fertilizer plants and restricting decorative lighting to save electricity.The push for extra supplies comes as New Delhi and Dhaka move to repair previously strained relations.“Considering the critical moment, we have asked them to slightly increase oil supply,” Bangladesh Energy Minister Iqbal Hassan Mahmood said after meeting the Indian high commissioner in Dhaka on Wednesday.Sri LankaSri Lanka’s Foreign Minister Vijita Herat also held an “emergency meeting” with the Russian ambassador in Colombo on Friday to discuss oil purchases under temporary U.S. sanctions exemptions, a statement from Sri Lanka’s foreign ministry said.Sri Lanka spent $3.83 billion on fuel imports last year, with most of the cargo coming from India and Singapore, according to government data.“Sri Lanka does not have enough storage facilities to store fuel for the next few weeks, but there are enough confirmed shipments by the end of this month,” Rajakaruna, chairman of state-run Ceylon Petroleum Corp., told reporters.Ashok Malik, a partner at Asia Group in New Delhi, told Bloomberg that India has stepped in to help meet fuel needs in the past.“I believe this will win goodwill from India because all countries are struggling,” Malik said.“While India’s energy ties with its neighbors are strong, it may not be able to solve all supply challenges,” Malik added.India relies on imports for nearly 90% of its annual crude oil needs. During the crisis, the company has been looking for alternative supply routes to offset supply disruptions.New Delhi ordered some 30 million barrels of Russian oil earlier this week after receiving a U.S. waiver and has been negotiating with Iran over the safe passage of more than 20 tankers.Earlier on Thursday, a Liberian-flagged ship carrying crude oil from Tanura port in Saudi Arabia also arrived at Mumbai port via the Strait of Hormuz.The Shenlong Suezmax tanker, said to be carrying about 135,335 tons (about 1 million barrels) of crude oil, departed from a Saudi port and arrived in Mumbai on March 1, becoming the first India-bound ship to safely navigate the strategic waterway and reach the Indian coast amid fierce fighting in the Gulf.