India Won’t Hurt Consumers To Meet Climate Targets, Says Oil Minister

India’s Balancing Act: Energy Affordability and Climate Change

India is standing at a critical crossroads in its journey towards sustainable development, and at the heart of this journey is the delicate balance between energy affordability and addressing climate change. For a nation with a population of 1.4 billion, where millions still grapple with developmental challenges, the idea of affordable energy is not a luxury but a necessity. "Energy is the backbone of our economic progress," emphasized Hardeep Singh Puri, India’s Minister of Petroleum and Natural Gas, during an exclusive interview at the India Energy Week 2025. "It’s not just about keeping the lights on; it’s about creating opportunities, generating employment, and improving the quality of life for every Indian."

Given the sheer size of India’s population, the government recognizes that any sudden spikes in energy prices could have far-reaching consequences. In a democracy where elections are frequent and public sentiment can shift quickly, the last thing the government wants is for energy costs to become a political flashpoint. "We cannot afford to antagonize the consumer through rushed policies or tokenism," Puri noted. Instead, the focus is on ensuring that energy remains accessible and affordable while simultaneously advancing the country’s sustainability goals.

Fighting Climate Change Without Compromising on Energy Access

India’s commitment to sustainability is evident in its achievements. As the only G20 country to have met its Paris Agreement commitments, India is leading the charge in expanding its renewable energy capacity, particularly in solar and wind power. The country is also betting big on green hydrogen, which it believes holds immense potential for decarbonizing industries. However, these efforts do not come at the expense of energy availability. Oil and gas remain critical components of India’s energy mix, ensuring that the country can meet its current and future energy demands without disruptions.

Puri made it clear that India’s developmental challenges necessitate a pragmatic approach to energy policy. "We cannot afford to sacrifice our economic ambitions on the altar of idealism," he said. "Our strategy is to transition to cleaner energy gradually, without jeopardizing energy security or affordability." This balanced approach reflects the government’s understanding that, for a large and diverse country like India, there are no one-size-fits-all solutions to the energy challenge.

How India Succeeded in Bringing Down Energy Prices

Over the past three years, India has made significant strides in reducing energy prices, a feat that Puri attributed to a combination of policy measures and market dynamics. The central government’s decision to cut excise duties on fuels has played a pivotal role in keeping energy costs in check. Additionally, several BJP-ruled states have reduced their value-added tax (VAT) on fuels, further easing the financial burden on consumers. These measures have been implemented without diluting India’s commitment to renewable energy, demonstrating that affordability and sustainability are not mutually exclusive goals.

The diversity of India’s hydrocarbon supplies has also been a key factor in maintaining competitive retail fuel prices. By diversifying its sources of oil and gas, the government has ensured that the country is not overly reliant on any single supplier, shielding consumers from price volatility. This strategy has been particularly effective in an oil market characterized by uncertain demand. For instance, India has expanded its list of official crude oil suppliers to 39 countries, up from 27 last year, with new partners like Argentina and Guyana joining the mix.

No Shortage of Oil Sellers: India’s Strategic Bargaining Power

One of the factors working in India’s favor is the abundance of oil and gas sellers eager to meet its growing demand. At a time when the global oil market is grappling with uncertain demand, India stands out as a bright spot, accounting for a quarter of global growth in oil consumption. While the country currently imports 90% of its oil, Puri remains confident that India’s strategic importance as a major consumer gives it significant bargaining power. "There’s no shortage of suppliers willing to sell to India," he said. "We’re in a buyers’ market, and we’re making the most of it."

India’s energy partnership with the United States is a case in point. Since the first shipment of U.S. oil to India in 2016, the volume of imports has grown steadily, reaching $20 billion annually. With President Donald Trump’s return to the White House and his known affinity for India, there are high hopes for an expanded energy partnership between the two nations. However, Puri cautioned against tying the relationship too closely to individual politicians. "Our relationship with the U.S. is bipartisan in nature, and we’ve built a strong foundation for collaboration," he said. "As our energy needs grow, I’m confident that U.S. suppliers will be more than willing to step up their exports."

Building a Sustainable Energy Future: Challenges and Opportunities

As India charts its course toward a sustainable energy future, the road ahead is not without its challenges. The sheer scale of the country’s energy needs, combined with the ongoing global economic uncertainties, poses significant hurdles. However, these challenges also present opportunities for innovation and collaboration. From expanding its renewable energy capacity to leveraging new technologies like green hydrogen, India is exploring all avenues to meet its climate goals while keeping energy affordable.

One of the key lessons from India’s energy journey is the importance of pragmatism. The country’s approach to energy transition is not about making false choices between affordability and sustainability but about finding a middle ground that works for everyone. By maintaining a diverse energy mix, prioritizing renewable energy expansion, and fostering international partnerships, India is paving the way for a sustainable and inclusive energy future.

Conclusion: Leading by Example

India’s energy story is one of ambition and pragmatism, offering valuable lessons for other developing nations. By keeping energy affordability at the core of its climate agenda, the country has demonstrated that sustainable development does not have to come at the cost of economic progress. As the world grapples with the challenges of climate change, India’s approach serves as a compelling example of how to balance competing priorities and create a roadmap for a cleaner, greener future.