Atiya Mujeeb
Abu Dhabi,May 15: Prime Minister Narendra Modi arrived in Abu Dhabi on Friday as part of his five-nation foreign visit, with energy security expected to dominate discussions amid rising global crude oil prices and Middle East tensions.
Official sources said two key MoUs are likely to be signed during the UAE visit , a long-term LPG supply cooperation pact and an agreement on Strategic Petroleum Reserves (SPR). The deals aim to ensure stable fuel supplies and strengthen India’s energy security during global disruptions.
The visit comes as India faces growing pressure from rising crude costs. Experts estimate that fuel prices may need to rise another 16% for Oil Marketing Companies (OMCs) to return to last year’s financial position. The landed cost of crude has surged over 74% in rupee terms, driven by global price rise and rupee weakness.
Economists warn that higher oil prices could worsen India’s Current Account Deficit (CAD) and weaken the rupee further, making imports costlier and increasing inflation risk.
The UAE is India’s largest LPG supplier, providing nearly 40% of India’s LPG needs, making the proposed agreement politically and economically significant. The SPR deal is expected to expand UAE crude storage in India and support reserve capacity expansion.
PM Modi’s tour also includes visits to the Netherlands, Sweden, Norway and Italy.
