India Reroutes 70% of Crude Imports Away from Hormuz, Increasing from 55% Baseline, says Govt. Of India

India has executed a significant structural shift in its energy procurement strategy, de-risking its crude oil supply chain from the volatile Strait of Hormuz, the government informed in an inter-ministerial press briefing on Wednesday.

By diversifying procurement routes, the world’s third-largest energy consumer now receives 70% of its crude imports via maritime paths outside the Strait of Hormuz, a substantial increase from the previous baseline of 55%. This logistical realignment ensures that India’s daily requirement of approximately 55 lakh barrels remains largely secure despite escalating regional tensions, the officials noted.

To maintain a steady flow of refined products like petrol and diesel to retail outlets, India’s domestic refineries have ramped up operations to maximum capacity utilisation, with several units currently exceeding 100% of their rated capacity. This internal surge is bolstered by a steady "inventory pipeline" of crude and Liquefied Natural Gas (LNG). As of the latest inter-ministerial briefing, cargos are currently en route to Indian ports, providing a tactical buffer to strengthen the national supply position in the immediate term.

In a decisive state-led intervention to protect the automotive and domestic sectors, the government invoked the Essential Commodities Act to issue a Natural Gas Control Order on March 9. This policy mandates 100% guaranteed supply for Compressed Natural Gas (CNG) and domestic Piped Natural Gas (PNG) without any cuts. To facilitate this, other sectors such as refineries and petrochemical units will absorb a 35% reduction in gas allocation, ensuring that high-priority transport and household needs are fully met.

The Ministry of Shipping reports that overall port operations across India remain stable, with no significant disruptions to export-import (ex-im) trade. The government is currently monitoring 28 Indian-flagged vessels operating in the Persian Gulf, including 24 located west of the Strait of Hormuz and four to the east. Dedicated 24-hour control rooms have been established to provide real-time assessment of vessel movements and cargo status, minimising hardships for exporters through continuous coordination with shipping lines.