- Repercussions of conflict related to Iran now also in India
- Long queues of people for fuel
- A big decision of the government on such situations
Iran war impact: Repercussions of the Iran-related conflict are now also felt in India; Where people from different parts of the country are standing in long queues for fuel. Big companies are also affected by this effect. As a result, the Government of India has issued an advisory for vehicle manufacturing companies. The government aims to ensure efficient use of every drop of fuel.
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A global crisis over oil and gas supplies
The conflict with Iran has created a global crisis over oil and gas supplies. This crisis is beginning to affect various industries; And the auto sector—as well as the companies that supply parts to the sector—have not been spared from the effects. If this conflict continues for a long time, companies may face a serious crisis in their efforts to keep their supply chains running smoothly. In view of this potential scenario, the government has issued guidelines to these companies.
What is the advice of the Government of India?
The Indian government has advised auto manufacturers and spare parts suppliers to tighten their production schedules. The main purpose behind this is to save fuel. According to a Reuters report, the Iran-related conflict has disrupted oil and gas imports from the Gulf, raising concerns about potential shortages. It is precisely for this reason that the government has taken this precautionary measure. Moreover, the Ministry of Heavy Industries has urged companies to shift operations in their factories from oil-based systems to electricity-based systems. Additionally, in view of rising raw material prices and possible shortages, a guideline was issued on March 25; in which the use of recycled aluminum or other alternative materials is recommended.
Consequences of war
India is one of the largest importers of oil and gas in the world. This guideline indicates that the government is very concerned about the potential impact of this conflict on energy flows, supply chains and availability of raw materials. Reuters contacted the Ministry of Heavy Industries for its reaction on the matter; However, no response has been received from the Ministry till now. The government is currently prioritizing gas for domestic use over industrial use. As a result, industries are getting only 80 percent of their average gas requirement. Several companies that supply spare parts to India’s leading automakers have started complaining about gas shortages—and the situation has become particularly critical at a time when domestic vehicle sales are growing rapidly.
Use of electricity instead of oil
A notification issued by the ministry said: “Wherever technically feasible, the use of electricity may be considered as an alternative to oil-based fuels. Additionally, production schedules should be optimized in such a way that fuel consumption in idle or standby mode is minimized.”
Vehicle companies
The government has also urged companies to use recycled aluminum wherever possible. Additionally, they are advised to use alternative materials for packaging and non-essential work. This initiative will help reduce demand related pressure.
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