India's Crude Oil Import Dependence and Energy Security
India is the world's third-largest consumer and importer of crude oil, importing approximately 85% of its requirements. The Gulf — particularly Saudi Arabia, Iraq, UAE, and Kuwait — is the primary sourcing region. Any disruption to the Strait of Hormuz, through which most Gulf oil exports must transit, creates an acute energy security crisis.
- India's crude import bill FY25: approximately $130 billion.
- A $10/barrel increase in crude prices raises India's import bill by $13–14 billion annually, wides the current account deficit, and puts downward pressure on the rupee.
- India's Strategic Petroleum Reserve (SPR): Approximately 5.33 million MT across three locations — covers only ~9.5 days of consumption.
- India had been importing discounted Russian crude at near-record volumes since 2022 (Russia became India's top supplier at ~40% of imports) — partially hedging against Gulf disruptions.
- The current Iran war has squeezed Gulf supply while also restricting Russian crude routing through the Black Sea, creating a compounded supply-side shock.
- India's LPG (Liquified Petroleum Gas) subsidy: Distributed to ~30 crore Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries; a significant portion of LPG precursors (propane, butane) are imported from Gulf states.
● Tracked since March 03, 2026 · last seen July 31, 2026 · updates as the daily brief publishes
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