India’s crude oil supply is secure, assures government
The Indian government assured Parliament that crude oil and petroleum product supplies remain secure despite the ongoing West Asia conflict, which has disrupted shipping through the Strait of Hormuz since late February 2026.
India has diversified its import routes, with approximately 70–75% of crude now arriving through channels outside the Strait of Hormuz, up from around 55% earlier.
Indian refiners have begun negotiating additional cargoes from the US, Russia, and West Africa to hedge against prolonged disruption.
LPG remains the more vulnerable commodity — India imports about 60% of its LPG consumption, and nearly 90% of those imports normally pass through the Strait of Hormuz.
The government has stressed no disturbance to petrol, diesel, or aviation turbine fuel supplies.
India's Crude Oil Import Dependence
India imports approximately 88% of the crude it consumes, making it the world's third-largest oil consumer and second-largest crude oil net importer. Import volumes stood at roughly 4.6 million barrels per day (mb/d) in 2023-24, with projections of 5.8 mb/d by 2030. Despite high import volume, oil imports as a share of GDP have fallen from around 8.5% to 4.8% over the past decade, reflecting faster economic growth and improving energy efficiency.
Key Details
- India imports from over 40 countries, reflecting deliberate supply diversification.
- Middle East suppliers — Saudi Arabia, Iraq, UAE — historically accounted for 2.5–2.7 mb/d of India's daily imports.
- Domestic crude output meets only about 12% of requirements, creating structural dependence.
The government's ability to quickly route 70–75% of imports outside the Strait of Hormuz demonstrates the effectiveness of this multi-source strategy, but the scale of dependence means even partial disruption creates significant cost and logistical pressure.
Energy Security as a Component of National Security
India's energy security policy is framed within the broader objective of ensuring reliable, affordable, and sustainable access to energy. The Ministry of Petroleum and Natural Gas coordinates import diversification, strategic reserves, and bilateral energy partnerships. The Integrated Energy Policy (2006) and subsequent updates emphasise reducing import dependence through domestic production, renewables, and demand-side efficiency.
Key Details
- India's petroleum import bill constitutes one of the largest components of the current account deficit.
- A $10 per barrel increase in crude prices widens India's current account deficit by approximately 0.4% of GDP.
- LPG, kerosene, and cooking fuels have direct welfare implications, making supply security a social as well as economic concern.
The government's assurance directly addresses energy security concerns; the LPG vulnerability reveals how different petroleum products carry different supply risks within the same crisis.
India–Gulf Relations and Economic Corridor Interests
India's relationship with Gulf Cooperation Council (GCC) states is anchored in energy imports, remittances (over $35 billion annually from the Gulf), and trade. The India–Middle East–Europe Economic Corridor (IMEC), announced at the G20 New Delhi Summit (2023), envisions an integrated shipping and rail network through Gulf states to Europe.
Key Details
- The Gulf hosts approximately 9 million Indian workers, the largest Indian diaspora in any single region.
- India–GCC bilateral trade exceeded $180 billion in 2023-24.
- IMEC is designed partly to reduce dependence on the Suez-Hormuz route for both goods and energy.
The West Asia conflict threatens the very corridor infrastructure that India has been investing in diplomatically; prolonged disruption could delay IMEC's operationalisation and increase trade costs.
- India's crude oil import dependence: ~88% of total consumption (FY2024-25).
- 70–75% of crude now routed outside the Strait of Hormuz (up from ~55% pre-crisis).
- India imports crude from over 40 countries.
- LPG vulnerability: ~90% of India's LPG imports normally transit the Strait of Hormuz.
- India's oil import bill impact: every $10/barrel rise adds ~0.4% to current account deficit.
- Middle East normally supplies 2.5–2.7 mb/d of India's crude imports.
- India–GCC trade: over $180 billion annually; Gulf remittances: over $35 billion.