Petrol, Diesel, CNG Hikes In India: Can PM Modi’s UAE Visit Prevent Bigger Shock?

New Delhi: Prime Minister Narendra Modi’s visit to the United Arab Emirates comes at a crucial time for India’s fuel security, with petrol, diesel and CNG prices beginning to rise amid growing tensions in West Asia.The ongoing US-Israel conflict with Iran has rattled global energy markets and raised fears over the security of the Strait of Hormuz - one of the world’s most important oil shipping routes. Any disruption in the region directly impacts India, which imports more than 85 per cent of its crude oil needs.Also Read - CNG Gets Costlier By Rs 2/kg After Petrol-Diesel Hike: Delhi, Mumbai Prices Up Amid Hormuz Crisis The concern is already visible on the ground. After petrol and diesel price hikes of Rs 3/ltr, CNG prices in Delhi and Mumbai were

also raised by Rs 2 per kg on Thursday. Oil companies had held prices steady for weeks despite rising global crude costs, but recent increases suggest pressure is building.Against this backdrop, PM Modi is expected to discuss energy security in detail with UAE President Mohamed bin Zayed Al Nahyan during his stop in Abu Dhabi on May 15.According to experts and observers talks is likely to focus on long-term crude oil and LNG supply agreements, expansion of India’s strategic oil reserves and ways to secure uninterrupted energy flows if tensions in the Gulf worsen.India currently has three strategic petroleum reserve facilities with a combined capacity of 5.33 million metric tonnes. Two more reserves with an additional 6.5 MMT capacity are planned. Part of India’s existing storage is already leased to Abu Dhabi National Oil Company, and fresh agreements could expand this arrangement further.India is also likely to seek more LNG supplies to strengthen cooking gas security and flexible supply terms in case shipping routes through Hormuz face disruptions.The UAE has emerged as a major energy partner for India in recent years. In January, India signed a $3-billion LNG agreement with the UAE. The country has also increased its share in India’s oil imports significantly over the past few years.

What To Expect From This Visit

The two sides are also expected to review progress under the India-UAE Comprehensive Economic Partnership Agreement (CEPA), signed in 2022, which has boosted bilateral trade sharply. The UAE is currently India’s third-largest trading partner, with both countries targeting trade worth $200 billion in the coming years.Apart from energy, discussions could also cover infrastructure investment, logistics, clean energy, food corridors, defence and cybersecurity cooperation.The Strait of Hormuz is expected to remain a major focus during the talks. A large portion of India’s oil and gas imports pass through the corridor. Any threat there can lead to higher freight and insurance costs, delays in shipments and immediate pressure on domestic fuel prices.Following the UAE visit, PM Modi will travel to Europe, including the Netherlands, Sweden, Norway and Italy. However, officials and observers see the Abu Dhabi stop as particularly important amid fears of a wider fuel and energy shock linked to the West Asia conflict.