Suez Blockage Detrimental to Crude Supply to India, Says Country's Finance Ministry

The Indian finance ministry is worried about the traffic jam in the Suez as it fears major disruption to its supply of oil and other petroleum products from the Middle-East region.

“Prices of crude oil may move upwards because of the disruption,” a top ministry official said while addressing journalists in New Delhi on Thursday. India is the top importer of crude and petroleum products via the Suez Canal.

The Suez Canal Authority announced a temporary halt to maritime traffic on Thursday as eight tugs worked to release the container ship, Ever Given, which was continuing to block the route leading to a massive jam at either end of the canal.

The salvage company said it may take weeks to free the traffic along the 193km (120 miles) Suez Canal which is a route for approximately 30 percent of the world’s total shipping container volume.

Finance ministry officials, however, underlined that prices may rise further and it is unlikely Indian consumers will get any relief from costlier fuel.

Consumers in several Indian states are paying record prices for a litre of petrol and diesel as the federal government led by Narendra Modi has not yet reversed jumps in excise duties imposed on petrol and diesel in 2020 to boost government revenues during the pandemic.

Media reports suggest that people in several parts of the country started using cheaper cooking fuel such as cow dung, crops and wood as cleaner fuel becomes unaffordable for them.