India faces no immediate threat to its energy security despite escalating tensions in West Asia, Petroleum Minister Hardeep Singh Puri said on Tuesday. The government reassured citizens that sufficient crude oil, fuel, and cooking gas reserves are available to manage the current situation.
The assurance comes amid rising hostilities in the Gulf region, from where nearly half of India’s crude oil imports originate.
Adequate Oil and Fuel Stocks
According to officials familiar with the matter, India currently holds:
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25 days of crude oil stocks
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25 days of fuel reserves
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Additional supplies in strategic petroleum reserves
India imports slightly over five million barrels of crude oil per day. Around 2.5 million barrels transit through the Strait of Hormuz, a critical 33-kilometre shipping corridor between Iran and Oman. Shipping activity in the area has slowed significantly following recent retaliatory strikes.
Despite these disruptions, the Petroleum Ministry stated it is “reasonably comfortable” with current stock levels and has activated a 24×7 control room to closely monitor supplies nationwide.
Diversified Energy Sources Reduce Risk
India has reduced its dependence on Hormuz transit routes to approximately 40% by diversifying crude sourcing to more than 40 countries. Over 60% of India’s energy needs are now met through producers in:
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North America
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Latin America
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West Africa
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Asian Russia
Officials added that cargoes not routed through Hormuz remain available to offset temporary disruptions.
LNG Supplies and Natural Gas Position
On the natural gas front, Qatar, one of India’s major LNG suppliers, has paused production temporarily. However, India maintains long-term LNG contracts with the United States, Australia, and Russia.
The government clarified that:
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Only 50% of India’s natural gas needs depend on imports
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Domestic production can meet cooking gas requirements in case of emergency
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Cooking gas stocks are sufficient for over three weeks
India is also in discussions with suppliers such as Canada and Norway to secure additional LNG cargoes if necessary.
Global Supply Disruptions Intensify
The conflict’s impact has extended beyond shipping routes:
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Output cuts reported at Iraq’s Rumaila oil field
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Operations halted at Saudi Arabia’s Ras Tanura refinery
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Fire reported at UAE’s Fujairah oil hub
These developments have added pressure to global supply chains.
According to energy tracking firm Kpler, India’s combined commercial and strategic reserves, including floating cargo, amount to approximately 100 million barrels — enough to cover 40–45 days of imports.
Crude Prices Surge
While supply remains stable for now, rising crude oil prices present a more immediate concern.
Global benchmark International Energy Agency indicated readiness to stabilise markets as Brent crude surged nearly 18% in two days, crossing $85 per barrel for the first time since July 2024.
India’s crude basket price rose to $80.16 per barrel on March 2, marking its highest level in the current fiscal year.
Outlook: Short-Term Impact Expected
Officials suggested the conflict may ease within a few weeks and do not foresee prolonged disruption. However, contingency plans remain in place should tensions persist.
India’s diversified sourcing strategy, strategic petroleum reserves, and active monitoring mechanisms are expected to cushion any short-term volatility.
