Hormuz crisis impact: India’s crude imports surge 60% in April-June; net oil, gas imports up 45%
India's crude oil imports rose sharply in the April–June quarter, with reported growth of around 60% year-on-year, and combined net oil and gas imports up by around 45% [Unverified — exact percentages as reported; underlying trend confirmed by trade data showing record crude volumes].
The surge follows sustained disruption to shipping through the Strait of Hormuz after hostilities between Iran, Israel and the United States escalated from early 2026, briefly cutting off a key route for Gulf oil and gas exports.
India's crude imports crossed 5 million barrels per day in June, an all-time high, as refiners rapidly diversified away from Hormuz-transiting Gulf suppliers.
Russian crude imports rose to a record share of India's total crude basket, while imports from Oman, Brazil, Nigeria, Taiwan and the UAE (routed via Fujairah outside the Strait) also rose sharply during the quarter.
Oil accounts for a very large share of India's overall trade deficit, so higher volumes combined with elevated global crude prices widened the import bill.
The Strait of Hormuz as a global energy chokepoint
The Strait of Hormuz is a narrow waterway between Iran and Oman connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea; it is the world's most important oil chokepoint, historically carrying about a quarter of the world's seaborne oil trade and roughly a fifth of global liquefied natural gas (LNG) trade — most of it from Qatar. Any closure or blockade directly threatens supply for major Asian importers, including India, Japan, China and South Korea, all of which depend heavily on Gulf energy transiting this route.
Key Details
- Located between Iran (north) and Oman's Musandam exclave (south); at its narrowest, the shipping lane is only a few kilometres wide.
- Normally carries roughly 25% of world seaborne oil trade and about 20% of global LNG trade.
- Alternative bypass pipelines exist (e.g., Saudi Arabia's East–West Pipeline, UAE's Fujairah pipeline) but cannot fully substitute for the Strait's throughput.
- The 2026 escalation between the US/Israel and Iran (beginning February 2026) triggered an extended closure/blockade of the Strait, sending Brent crude above $100 a barrel for the first time in years.
The reported surge in India's April–June crude and gas imports is a direct downstream effect of this chokepoint disruption — Indian refiners had to import more from non-Hormuz sources (and pay elevated freight/insurance costs) to maintain fuel supply, pushing up both import volumes and the import bill.
India's crude oil import dependence and supplier diversification
India imports roughly 85–88% of its crude oil requirement, making energy security a standing strategic concern. Historically, the Gulf (Saudi Arabia, Iraq, UAE) supplied a large share of India's crude, mostly transiting the Strait of Hormuz. Since the Ukraine war (2022) and the 2026 Hormuz crisis, Indian refiners have progressively diversified toward Russian crude (via discounted, sanctions-adjacent trade) and non-Gulf sources (West Africa, Latin America, and Gulf barrels rerouted via non-Hormuz terminals such as Fujairah in the UAE).
Key Details
- India imports roughly 85% or more of its crude oil needs, making it acutely exposed to global price and route shocks.
- Around 70% of India's crude imports are now reported to be routed outside the Strait of Hormuz, up from about 55% before the crisis, through supplier diversification.
- Russian crude has risen to over half of India's total crude imports in some months during the crisis — a record share for Russia–India trade.
- LPG is more exposed: roughly 60% of India's LPG consumption is imported, and a very high share of that historically transited the Strait, making cooking-gas supply chains especially sensitive to Hormuz disruption.
The reported 60% surge in crude imports and 45% rise in net oil-and-gas imports reflects this diversification-driven volume increase — India is importing more, from more (and often costlier/farther) sources, to compensate for reduced reliance on Hormuz-transiting Gulf barrels.
India's Strategic Petroleum Reserve (SPR) as a buffer mechanism
India maintains an emergency crude stockpile through Indian Strategic Petroleum Reserves Limited (ISPRL), a special-purpose vehicle under the Ministry of Petroleum and Natural Gas, with underground storage caverns at Visakhapatnam, Mangaluru and Padur. The combined capacity is about 5.33 million metric tonnes, sufficient for roughly 9–10 days of India's crude consumption, intended to cushion short-term supply shocks like a Hormuz closure while suppliers are diversified.
Key Details
- ISPRL storage locations: Visakhapatnam (1.33 MMT), Mangaluru (1.5 MMT), Padur (2.5 MMT) — combined 5.33 MMT.
- Provides roughly 9–10 days of national crude cover; Oil Marketing Company commercial stocks add further buffer, taking total cover to over two months when combined.
- Distinct from the US Strategic Petroleum Reserve model; India's SPR is much smaller relative to consumption and is a supplementary, not primary, security mechanism.
The scale of the reported quarterly import surge illustrates why India relies primarily on rapid commercial diversification (Russia, West Africa, non-Hormuz Gulf routes) rather than SPR drawdown alone to manage a prolonged chokepoint disruption — the SPR's ~9-day cover cannot absorb a multi-month crisis by itself.
- Reported quarterly (April–June) crude import growth: approximately 60% year-on-year; net oil and gas import growth: approximately 45% [Unverified — precise percentages as reported].
- India's crude imports crossed 5 million barrels per day in June, a record high, with Russian crude supplying over half of the total in some months.
- Around 70% of India's crude imports are now routed outside the Strait of Hormuz, up from about 55% before the 2026 crisis.
- The Strait of Hormuz normally carries about 25% of world seaborne oil trade and about 20% of global LNG trade.
- India's ISPRL Strategic Petroleum Reserve holds about 5.33 million metric tonnes of crude across three sites, covering roughly 9–10 days of national consumption.