PM Modi credits ‘jalwa’ of India’s diplomacy for beating West Asia fuel crisis: ‘history will record it’

“During this time of war, India’s friendship with other countries proved very useful. When this crisis began, India was importing fuel and energy from 25-26 countries. Lekin sankat ke samay Bharat ki diplomacy ka jalwa dikh gya, doosre deshon ke saath humare ache sambhandh is sankat ki ghadi mein bahut kaam aaye (But during this crisis, the power of India’s diplomacy was demonstrated; our good relations with other countries proved very useful during this crisis). During the war itself, India began importing fuel from more than 40 countries,” he said.

On the occasion, Modi also laid the foundation stone and inaugurated various development projects worth around Rs 1.06 lakh crore in Balotra, with the projects spanning multiple sectors, including petrochemicals, urban transport, railways, roads, renewable energy, and power transmission. He dedicated India’s first greenfield integrated refinery-cum-petrochemical complex to the nation at Pachpadra.

Prime Minister Narendra Modi flags off refinery production tankers from the Greenfield Refinery-cum-Petrochemical Complex, developed as a joint venture between Hindustan Petroleum Corporation Limited (HPCL) and the Rajasthan Government, at Pachpadra, in Balotra on Saturday. Union Minister for Petroleum and Natural Gas Hardeep Singh Puri, Rajasthan Governor Haribhau Kisanrao Bagde, Chief Minister Bhajanlal Sharma, and Deputy Chief Minister Diya Kumari also present. (Narendra Modi Photo Gallery/ANI Photo)

Developed as a joint venture between Hindustan Petroleum Corporation Limited (HPCL) and the Rajasthan government, the 9 Million Metric Tonnes Per Annum (MMTPA) Greenfield Refinery-cum-Petrochemical Complex has been established with an investment of over Rs 79,450 crore.

“A lot of rumours were spread and people were instigated and political games were played, but those whose intentions were wrong did not succeed,” the PM said on the energy crisis.

“Apart from minor disruptions in remote areas, there were no major supply challenges. Diesel and petrol companies alone incurred losses of over Rs 75,000 crore. This means a loss equivalent to the construction of a new refinery. The government treasury shouldered the responsibility of covering this loss. We also reduced the excise duty of Rs 10 per litre, ensuring the public was protected from excessive burden,” he said.

“India sent a clear message to the world that national interest and the interests of its citizens are paramount. Our mantra is ‘nagrik devo bhava.’ The country didn’t emerge from this unexpected challenge just like that; it was also due to the success of our visionary policies that have been going on for a decade,” he said.

Attacking the previous Ashok Gehlot government in Rajasthan, he said: “Today, we are inaugurating the Rajasthan Refinery here. We signed an MoU for this in 2017. However, the Congress government ruled Rajasthan from 2018 to 2023. Due to Congress’s non-cooperation, work here virtually stalled. However, as soon as the double-engine government came into power, work progressed rapidly”.

“And you know my working style, whatever we lay the foundation stone for, we also inaugurate it. Similarly, India has steadily expanded its refinery capacity. The United States hasn’t built a single new refinery in the last 50 years, and Europe’s refinery capacity has steadily declined, while India today has the world’s fourth-largest refinery capacity. And we’re not going to stop there. This capacity is set to grow even further in the coming years,” he said, adding that it was due to such efforts that “India has emerged victorious from the biggest energy crisis of the century.”

He said that the country “took correct decisions at every stage: accurately assessed the crisis in a timely manner; devised an effective strategy; utilised the resources in a balanced way; and positively utilised Bharat’s diplomatic power. Only then was Bharat able to emerge from the crisis.”

“When certain forces were busy spreading rumours and apprehensions in the public sphere, the scale at which work was being carried out and the way the situation was being managed — that hard work, those efforts, and the patience involved were remarkable. Every single step was taken sensitively, whether at the policy level or the diplomatic level. And sooner or later, history will record that all of this was unprecedented,” he said.

How India kept LPG supplies steady

Giving an example of the LPG, he said that nearly 60 percent of our requirement is imported from other countries, and within this, as much as 90 percent was coming in from Gulf countries via Hormuz. “But suddenly, the wartime conditions brought that supply to a near-halt. You can imagine the massive uproar that was about to erupt in our country. But this land of Rajasthan has taught us to challenge the challenges itself. And that is why, as soon as the crisis began, we focused on the refineries’ strength. Instructions were given to produce LPG instead of the gas that was previously produced for industrial use. And within seven days, there was an increase in LPG production,” he said.

While there was 35,000 metric tonnes of LPG produced in the country earlier, it rose to 54,000 metric tonnes during the crisis, he said. “Refineries that had never produced LPG before were configured for this. The government also ensured that the entire load of cooking gas demand does not fall on LPG: a campaign was launched to expand Piped Natural Gas (PNG) connections to kitchens. Within a short time, 11 lakh homes were connected with the PNG connections,” he said.

“We also ensured that domestic consumers did not face an excessive burden. Given the circumstances, the price of a domestic gas cylinder could have soared to Rs 2,000 – a figure being predicted by major market experts. Yet, even now, a domestic LPG cylinder is being provided for less than Rs 950. While the poor are receiving the cylinder for under Rs 650 under Ujjwala (scheme),” the PM said.

Citing the significant reduction in commercial gas prices earlier this week, he said that it demonstrates “the sensitivity with which our government is working”. From July 1, 2026, oil marketing companies slashed the price of 19-kg commercial LPG cylinders by Rs 183.50 across major metro cities, reversing the hikes that months of geopolitical tensions in West Asia had caused.

“The crisis concerning diesel and petrol caused by the war was also severe. Our country does not have large oil wells. When this crisis escalated, crude oil prices rose from 70 dollars per barrel to 120 dollar per barrel. The routes for imports were also closed. Diesel and petrol prices rose by 40 to 50 percent in many countries around the world. And in many countries, diesel and petrol had even started being distributed based on quotas. But in India, such a situation did not arise even for a single day,” he said