Amidst the Middle East crisis, a situation of energy emergency (Energy Lockdown) is being created in many countries of the world. The Southeast Asian country Philippines has declared a national energy emergency in its country amid the growing Middle East crisis.
According to Bloomberg report, this move is the country’s first nationwide emergency declaration after the 2020 Covid crisis. The Philippines is dependent on the Middle East for almost all of its oil needs, due to which the current tension is directly affecting it. Let us know what is energy emergency.
What is Energy Lockdown?
The term energy emergency is used when there is a sudden major crisis on a country’s energy supply (oil, gas, electricity) or the supply is badly affected. In simple language, when the country is not able to get the necessary fuel (petrol, diesel, gas) properly, it is called a situation like Energy Lockdown.
When does energy lockdown take place?
Energy lockdown may occur in case of war or tension between two countries. In such a situation, the supply of oil stops or reduces. In such a situation, the supply chain breaks, due to which demand and supply are completely affected. Petrol and diesel become expensive. Suddenly inflation increases and electricity and industries are affected. Its direct impact is on the everyday life of common people. India is largely dependent on imports for its energy needs, hence such a situation has a direct impact on the country’s economy.
Is the threat of energy lockdown looming in India?
A sharp rise in oil prices is being seen due to the impact of movement of ships from Hormuz. About 20% of the world’s crude oil passes through this route, so it is being considered one of the biggest supply bottlenecks ever. This situation is challenging for India, because the country fulfills about 90% of its oil needs through imports. At the same time, India has only about 9.5 days of strategic oil reserves, which further increases the risk. Prime Minister Narendra Modi recently described the West Asia war in the Lok Sabha as a big challenge and appealed to the countrymen that we have to be prepared for challenges like Corona.