India, UAE Sign LPG and Energy Security Agreements Amid Iran Tensions

India on Friday signed multiple energy and strategic cooperation agreements with the United Arab Emirates (UAE), including a long-term Liquified Petroleum Gas (LPG) supply pact and a Memorandum of Understanding (MoU) on strategic petroleum reserves, amid rising global concerns over the ongoing conflict involving the United States and Iran.

The agreements were signed during Prime Minister Narendra Modi’s brief visit to United Arab Emirates, where he met UAE President Mohamed bin Zayed Al Nahyan in Abu Dhabi while en route to the India–Nordic Summit.

India, which is among the world’s largest LPG importers, entered into the fuel supply arrangement to ensure stable energy availability amid volatility in global crude and gas markets. The agreement is expected to cushion the impact of disruptions caused by the escalating tensions in West Asia.

Apart from the LPG deal, both countries also signed an MoU relating to strategic petroleum reserves, aimed at strengthening long-term energy security cooperation between the two nations. The agreements come at a time when fuel prices in India have increased by Rs. 3 per liter for both petrol and diesel.

India and the UAE further signed an agreement on a strategic defence partnership framework and another MoU for establishing a ship repair cluster at Vadinar in Gujarat.

The visit assumes significance as the Indian government has recently announced and advised multiple fuel conservation measures in light of the global energy situation. Prime Minister Modi had urged citizens to reduce fuel consumption through work-from-home arrangements, public transport usage and carpooling initiatives.

The latest fuel price revision took effect on Friday after state-run oil marketing companies increased petrol prices from Rs.94.77 per litre to Rs.97.77 per litre and diesel prices from Rs.87.67 per litre to Rs.90.67 per liter in Delhi. Prices, however, continue to vary across states depending on local taxes and levies.

Union Petroleum Minister Hardeep Singh Puri had earlier indicated that a fuel price revision was likely amid the prevailing international situation.