India's Ministry of Petroleum and Natural Gas has said the country is prepared to manage potential disruptions to its energy supply following the outbreak of hostilities in the Middle East, after the United States and Israel launched strikes on Iran and Tehran responded with retaliatory attacks across the region.
Petroleum Minister Hardeep Singh Puri briefed the media on Monday, stating that India holds sufficient inventories of crude oil and key petroleum products — including petrol, diesel, and aviation turbine fuel (ATF) — to absorb short-term supply shocks from the region. The ministry said it has set up a round-the-clock control room to monitor fuel supply and stock levels across the country, and that officials are "cautiously optimistic" that phased measures can be taken, if required, to address any further deterioration.
A central element of India's position is its diversification of energy procurement over recent years. The ministry stated that Indian energy companies now have access to supply routes that bypass the Strait of Hormuz, which would help offset any reduction in shipments routed through the waterway.
The stakes are considerable. India imports about 88 per cent of the crude oil it needs, with more than 50 per cent supplied by Middle Eastern countries and transiting the Strait of Hormuz. India's dependence on Hormuz shipments has increased in recent months, partly due to a decline in purchases of Russian crude, with Indian refiners reducing Russian crude purchases to around 1.15 million barrels per day in early 2026, compared with 1.7 million barrels per day in 2025.
India holds about 100 million barrels of commercial crude oil stocks — in storage tanks, underground strategic reserves, and on ships in transit — which could theoretically cover around 40 to 45 days of its requirement if Strait of Hormuz flows are disrupted, according to energy data firm Kpler. Analysts note that additional refined product inventories would extend that coverage further, though the more immediate concern is price. Brent crude has crossed $80 per barrel, roughly 10 per cent higher since the Iran crisis began.
The Strait of Hormuz is one of the most critical energy chokepoints in the world. In 2024, oil flow through the strait averaged 20 million barrels per day, the equivalent of about 20 per cent of global petroleum liquids consumption, with about 84 per cent of that volume destined for Asian markets. China, India, Japan, and South Korea are among the largest recipients.
Should supplies through the strait remain disrupted for an extended period, India has a range of alternatives, though each carries added cost. India can source crude from Venezuela, Brazil, West Africa, and the United States, as well as Russia, though supplies from distant sources take considerably longer to arrive — around a month from Russia, compared to approximately five days from the Gulf.
Analysts warn that even without a full closure of the strait, heightened geopolitical risk premiums could push global oil prices higher, widening India's current account deficit and putting pressure on inflation and the rupee.
India occupies a significant position in global petroleum markets, as the third largest importer of crude oil, the fourth largest refiner, and the fifth largest exporter of petroleum products in the world. The ministry said that protecting the interests of Indian consumers remains its priority, and that supply and pricing conditions would continue to be reviewed as the situation evolves.