'No shortage of energy in India': Union minister Hardeep Singh Puri amid supply concerns due to US-Iran war
Union Petroleum Minister Hardeep Singh Puri assured that India faces no energy shortage despite the ongoing US-Iran conflict and volatility in West Asia
India has diversified its crude oil imports, now sourcing from approximately 40 countries compared to 27 in 2006-07
Russian crude has constituted roughly one-third of India's total crude imports since January 2024, averaging around 1.7 million barrels per day in 2025
New LPG contracts have been signed with the United States to offset potential supply disruptions from the Persian Gulf
About 70% of India's crude oil imports now come from sources outside the Strait of Hormuz
However, LPG imports dropped approximately 40% in March 2026 due to disruptions related to the Strait of Hormuz
India's Energy Security Framework
India is the world's third-largest oil consumer, importing approximately 87% of its crude oil requirements due to limited domestic reserves. Energy security has been a central pillar of India's economic policy, driving diversification of import sources, investment in strategic reserves, and development of alternative energy pathways. The country's energy policy is guided by the principle of ensuring affordable, reliable, and sustainable energy access.
Key Details
- India imports ~87% of crude oil and ~50% of natural gas requirements
- Crude oil import bill was approximately $120-130 billion annually in recent years
- India sources crude from ~40 countries (up from 27 in 2006-07)
- Key suppliers: Russia (~33%), Iraq, Saudi Arabia, UAE, Kuwait, and Nigeria
- Domestic crude production has stagnated at ~28-30 million tonnes per annum
The minister's assurance of no energy shortage rests on India's systematic diversification of crude oil sources over two decades, reducing dependence on any single region, particularly the volatile West Asia corridor.
Strategic Petroleum Reserves (SPR) of India
India established the Indian Strategic Petroleum Reserves Limited (ISPRL) in 2004 as a wholly owned subsidiary under the Ministry of Petroleum and Natural Gas. The SPR program maintains emergency crude oil storage at three underground rock cavern facilities along India's coastline to buffer against supply disruptions.
Key Details
- Total SPR capacity: 5.33 million metric tonnes (MMT) or 36.92 million barrels
- Three locations: Visakhapatnam (1.33 MMT), Mangaluru (1.5 MMT), Padur, Udupi (2.5 MMT)
- Current fill level (March 2026): ~3.372 MMT (~64% of total capacity)
- Coverage: Approximately 9.5 days of India's oil consumption
- Phase-II expansion planned at Chandikhol, Odisha, and additional capacity at Padur
- Combined with commercial stocks held by oil companies (~65 days), total buffer is approximately 74 days
While the minister emphasized diversification, India's SPR at only 9.5 days of coverage remains well below the IEA-recommended 90 days, underscoring the continued vulnerability that makes source diversification critical.
Strait of Hormuz as a Global Energy Chokepoint
The Strait of Hormuz, located between Oman and Iran, is the world's most critical oil transit chokepoint. Approximately 20 million barrels per day of oil (about 20% of global petroleum liquids consumption) and significant LNG volumes pass through its two-mile-wide shipping lanes. Any disruption to traffic through this strait has immediate implications for global energy prices and supply security.
Key Details
- Width at narrowest point: ~33 km (~21 miles); shipping lanes are only ~3.2 km wide
- Handles ~20% of global oil trade and ~25% of global LNG trade
- India's exposure: ~40-50% of crude oil imports and ~90% of LPG imports transit through the Strait
- Four Asian nations (China, India, Japan, South Korea) account for 75% of oil flows through the Strait
- India is the second-largest destination for Hormuz oil flows at ~14.7%
- Non-Hormuz diversification: India now routes ~70% of crude imports outside the Strait (primarily from Russia, West Africa, Americas)
The 40% drop in LPG imports in March 2026 due to Hormuz disruptions illustrates precisely why India's diversification away from the Strait is a strategic imperative, even as it highlights the remaining vulnerability in LPG supply chains.
- India imports ~87% of its crude oil, making it the world's 3rd largest oil consumer
- Crude oil sources diversified from 27 countries (2006-07) to ~40 countries (2026)
- Russian crude: ~33% of India's imports since January 2024 (~1.7 mbpd in 2025)
- ~70% of India's crude now comes from outside the Strait of Hormuz
- LPG imports dropped ~40% in March 2026 due to Hormuz disruptions
- SPR capacity: 5.33 MMT at Visakhapatnam, Mangaluru, and Padur (~9.5 days coverage)
- SPR fill level: ~64% (3.372 MMT) as of March 2026
- Strait of Hormuz: Handles ~20 million barrels/day, ~20% of global petroleum trade