India has diversified energy imports through alternate suppliers after reducing reliance on Iranian crude amid disruptions linked to the West Asia conflict, according to government statements issued during a period of heightened Gulf instability.
Shipping through the Strait of Hormuz slowed dramatically following military escalation involving Iran, Israel and the United States, threatening supplies that feed India’s refineries and liquefied petroleum gas distribution networks serving hundreds of millions of households. Officials said procurement teams activated contingency contracts with producers in the Americas, Africa and other Middle Eastern exporters including Saudi Arabia and the United Arab Emirates.
Energy security is expected to dominate U.S. Secretary of State Marco Rubio’s visit to New Delhi beginning May 23. India imports more than 80 percent of its crude requirements and remains vulnerable to price spikes that affect inflation and the rupee exchange rate.
Analysts said the diversification push aligns with longer-term goals to broaden supplier bases beyond any single volatile region, building on earlier reductions in Russian oil purchases following U.S. trade negotiations.
India’s refiners increased spot purchases from the United States and West Africa as Gulf shipping insurance costs rose following Hormuz disruptions. The Ministry of Petroleum and Natural Gas has held emergency coordination meetings with state-owned oil marketing companies to ensure adequate LPG cylinder supplies for domestic consumers.
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Sources:
https://www.pmindia.gov.in/en/news-updates/